Ninety percent of car manufacturers are not working at full capacity, up from 37% in October according to figures from CBI.

Society of Motor Manufacturers and Traders also reported that the number of cars made in December was 47.5% lower than the same month in 2007.

Bentley is the latest carmaker to announced cuts in production with its Crewe-based plant shutting down for seven weeks in March and April in response to falling demand.

It said that all 1,900 workers affected by the move would remain on full pay.