The government has been urged to take action to offer easier access to finance and credit so that people in the UK are able to purchase new vehicles and car insurance policies.
The Society of Motor Manufacturers and Traders (SMMT), has revealed that the car production industry has been hit hard by the recession.
Figures show that the number of vehicles being produced in the UK declined by 59 per cent in February.
As a result, the organisation is urging the government to support short-time working and the implementation of a vehicle scrapping scheme.
Paul Everitt, chief executive of the SMMT, said the fall is production "is a direct result of weak demand".
"It shows there is also a need to protect the highly-skilled workforce and the valuable industrial capability in the UK automotive sector," he added.
Those buying a new motor were recently advised by esure to check the car insurance group of the vehicle before making the purchase.
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