BMW is reported to be close to selling off its Swindon Pressings plant.

It is believed that the Stratton factory will have a change of owner as soon as the New Year.

The company is thought to be on the brink of selling the Swindon body panels plant to Mayflower, the UK car components and bus manufacturer, in a deal worth £80m to £100m.

The plant supplies body panels to MG Rover, Honda, Land Rover and BMW's new Mini plant at Oxford.

Mayflower, which already makes the body for the MGF sports car, has been the favourite to acquire the business for some time.

It is thought Mayflower would expand its production in Swindon to supply other car makers such as Vauxhall.

The Independent newspaper claims a deal is about to be struck, but both companies today insisted the move remains speculation.

BMW admits it is looking for a seller for the Stratton site, which employs around 2,000.

Speaking from his Munich base, spokesman Juerg Dinner said: "We do not see Swindon pressings as a BMW core business. It supplies to third parties and all the employees are aware of this.

"We are looking for a buyer, there is no time pressure and we are speaking with several third parties, also about terms and conditions for employees which remain confidential."

Mayflower spokeswoman Laura Hickman said: "Mayflower's position has not changed and we have nothing to add."

BMW bought Rover in 1994 but increasing losses by the firm are thought to have reached more than £1 billion last year.

Much of the company was sold to a consortium led by John Towers, including the Longbridge plant in Birmingham. But the Swindon plant was kept by BMW and renamed Swindon Pressings.