Car production in December fell 47.5% compared to the same period in 2007, according to recently released figures by the Society of Motor Manufacturers and Traders (SMMT).

A major reason why the decline was so steep is that a number of car manufacturers closed for several weeks over the Christmas period in a bid to save on costs.

This is the third consecutive drop in monthly car production in the UK, and the figure means that car production for the whole of 2008 was down 5.7% from the previous year.

The car industry has been one of the worst effected sectors due to the recession and the SMMT is due to meet with business secretary Lord Mandelson before the end of January to discuss what can be done to help the ailing industry.

"The automotive industry is of strategic economic and social importance, reflected in the measures being disclosed by governments across Europe," said Paul Everitt, chief executive of the SMMT.