LONDON (AP) — British auto manufacturers stepped up pressure on Prime Minister Gordon Brown's government to deliver an industry bailout package on Thursday as a report revealed that car production slumped by a third in November.

The Society of Motor Manufacturers and Traders warned that crumbling domestic and export demand would lead to extended plant closures and job cuts as production falls, leaving Britain unprepared for improved economic conditions.

The industry body wants the government — which has confirmed it is in talks with Jaguar Land Rover's Indian owner about possible financial support — to move quickly to restore demand and loosen tight credit conditions.

"The U.K. motor industry is facing unprecedented challenges and urgent action is now required," said the society's chief executive, Paul Everitt.

"Without swift action and the ability to access credit and finance, significant damage will be done to the nation's industrial capability, leaving the UK poorly equipped to take advantage of any global growth when it returns," he added.

The society said that the number of cars built in British factories dropped 33 percent to 97,604 last month. Commercial vehicle production fell 50 percent to 10,965.

Almost 1.4 million cars and trucks have been built so far this year, a 2.7 percent fall from last year.

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.

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

It employs some 850,000 people and hundreds of supply companies, leading to fears of large-scale layoffs if production cuts continue into the new year.

The auto society's report comes as the government confirmed it is in talks with Tata Motors Ltd., the owner of Jaguar Land Rover, for possible aid.

Tata argued they are "under particular strain," Business Secretary Peter Mandelson said.

But he stressed that the government did not have "an open chequebook" and that responsibility lay first with Tata. Government intervention would depend in large part on the severity of the downturn in the automotive market, he added in an interview with Sky News.

The government has also been discussing an aid package for General Motors' Vauxhall unit in recent weeks.

Other manufacturers have already collapsed under the strain. Car parts maker Wagon PLC filed for a form of bankruptcy last week after failing to persuade key shareholders to commit to an emergency refinancing package.

Vauxhall, meanwhile, has doubled the length of its Christmas vacation to a month to cope with slackening demand.

That echoes a decision by Chrysler to shut down all its North American plants for at least a month, extending its normal two-week holiday shutdown that begins Friday.

General Motors has halted construction of a plant tied to one of its most important projects, the Volt. Ford has also said it will shut down 10 plants for an extra week in January because of sluggish sales.