The Eurozone economies shrank by 0.6% in the last quarter of 2012 with Germany, France and Italy seeing falls that were bigger than expected.
Forecasts had predicted a 0.4% contraction. Germany’s economy shrank by 0.6%, France fell by 0.3% and Italy 0.9%.
The pressure on European economies will affect the flow of car production and the UK is expected to take on additional units to help prop up weaker markets.
Growth in the Eurozone is predicted to return in 2013 but analysts believe any growth will be small.