Due to sliding car sales in Europe, a number of automotive companies have decided to cut back on vehicle production this year. With a slump of 8 per cent in September, the month was confirmed as the worst on record for the last decade.

The manufacturers’ association, ACEA, made it clear that car markets across Europe are threatened. Vehicle finance is also suffering as a result of the credit crunch, with car finance now harder to get in many countries.

The secretary general of the ACEA, Ivan Hodac, reportedly commented: The economic downturn adds to already extensive pressure on car production in Europe, due to the increasingly stringent regulatory requirements, in particular pending CO2-reduction legislation. The car industry fully supports a European policy on the reduction of CO2 from cars, but it is essential legislators address the restraints manufacturers face in fulfilling the requirements.