Another UK car factory could be at risk of closure, a major report hinted yesterday.

Accountants at PricewaterhouseCoopers expect light vehicle assembly to decline by 16 per cent in the UK by the end of the decade, despite estimating an increase in global production.

PwC wouldn't say what plant might be vulnerable - the Midlands still has Land Rover at Solihull, Jaguar at Castle Bromwich, and Toyota at Burnaston, near Derby.

However Chris Hibbs, Midlands partner and UK automotive leader at PwC, said he was confident in the firm's findings based on a detailed forecast created from information from manufacturers within the industry.

The latest threat comes at what is already an unstable environment for employees within the automotive manufacturing industry following a string of closures over the past few years.