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Fewer new cars will spill onto European streets as manufacturers scale back production (Photo: EUobserver)

European car makers scale back production as crisis deepens

German and French car makers have temporarily closed their factories as demand falls due to the financial crisis. Meanwhile, additional German banks are seeking state aid, while Eastern European economies have also been badly hit, with the IMF bailing out Hungary and Ukraine.

German car giant BMW on Monday (27 October) stopped its production in Leipzig for four days, while Mercedes-producer Daimler announced a closure of up to five weeks in December, German media have reported.

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Fewer new cars will spill onto European streets as manufacturers scale back production (Photo: EUobserver)

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