Rover could face stiff competition from Jaguar in the race to supply cars to Government ministers.

Most of the Cabinet have chauffeur-driven Rover Sterlings or Rover 800s.

But with the present contract running out next June, there are indications that Rover's new Cowley-built R75 could be challenged by Jaguar's new S-type saloon.

Officials of the Government Car Service, which allocates cars to ministers and civil servants, are said to have studied both cars at the Motor Show in Birmingham last week.

Industry experts believe that the S-type whose design is based on the classic Jaguar style of the 1960s, would be popular with ministers.

But there are questions whether the boot would be big enough to take their large numbers of red boxes, the large briefcases packed with ministerial papers.

A Whitehall spokesman said trials on a number of new cars would be taking place to assess their suitability.

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