Production of the Mini is to be cut back in the latest sign of problems facing carmakers in the wake of the economic slowdown.

Workers at the firm's factories in Cowley and Swindon have been told the two-week Christmas shutdown is to be extended to four weeks this year as a result of the credit crunch.

The factory will shut down on December 7 — and not re-open until January 5 —11 days longer than previously thought.

Despite a slump in the global economy, sales of the Mini have risen in the USA as they swop gas-guzzling vehicles for more fuel efficient city cars.

To help offset the cost of Christmas, part of the factory workers’ annual bonus is being brought forward.

They are set to receive £400 before they break for the festive period.

However, this latest news is a blow to the industry following an announcement earlier this week by Jaguar Land Rover that a voluntary redundancy scheme was to be extended to hundreds of workers.

Roger Maddison, national officer at Unite, said: "We understand the very difficult economic conditions car manufacturers are facing.

"We have robust agreements in place to protect our members as much as possible during these difficult times. However, we remain vigilant and we are keeping a close eye on developments in the car industry."

Unite said the extended shutdown of Mini production would not affect workers' pay.

Source: Witney Gazette