Industry leaders say that's far too little -- the latest official data showed that car production in Britain slumped almost 60 percent in January, with only 61,404 cars manufactured, compared to the same month a year ago.

'The extent of the decline highlights the critical need for further government action to deliver the measures already announced and ease access to finance and credit,' said Paul Everitt, the chief executive of the Society of Motor Manufacturers and Traders.

Leaders of the Unite union are calling for a 13 billion pound strategic assistance package to provide commercial loans and support to alter working patterns through the downturn.

The industry also wants the government to follow the lead of European counterparts in implementing incentives to scrap older cars to buy new, environmentally friendly vehicles.

'The need for a scrappage scheme to encourage a pick-up in new car sales is now essential,' said Paul Watters, a spokesman for the AA motoring group. 'Thirteen EU countries have one, and the U.K. is lagging.'

Unite joint leader Tony Woodley, who met with Treasury chief Alistair Darling this week for talks on the industry, said that financial assistance was more justified in Britain than in the United States because the domestic industry was already in far better shape and could bounce back strongly after the recession.

'We have efficient plants, good practices and good people,' he said. 'This isn't the case in the United States.'

The worldwide financial meltdown has hit the automotive sector particularly hard and already pushed America's big three automakers -- Chrysler LLC, General Motors Corp. and Ford Motor Co. -- to the brink of bankruptcy.

The British car industry accounts for around 10 percent of exports, earning an average of 50 billion pounds in revenue in recent years.

The figures out Friday showed that 83.5 percent of cars made last month were allocated for export -- a record for any January -- but as the economy drags deeper into recession, the announcements on job losses and production cutbacks mount.

BMW, Nissan, Aston Martin, Honda, Ford, Jaguar Land Rover, Bentley and Toyota have announced thousands of job cuts between them. Several of the manufacturers have also cut staff hours or pay as they reduce production.

The industry employs some 850,000 people and hundreds of supply companies across Britain, leading to fears of thousands more layoffs if production cuts continue.

'The car industry is in crisis but the government is still dithering,' said Ken Clarke, the business spokesman for the opposition Conservative Party.