The trade slide blamed on last month's terror attacks has spread to the auto sector, with Jaguar extending a shutdown at two UK plants, a report said.

Jaguar, owned by US car giant Ford, is to transfer up to 3,500 production line workers to other duties for two weeks this month, the Financial Times said.

The move, affecting two Midlands plants where the XJ, XK and S-type models are assembled, has been blamed on a trade downturn stemming from the terrorist atrocities in the US last month.

Although the UK-based carmaker sold 3,020 cars in its key US market last month, 4.6% up on a year before, the firm had forecast brisker trade, the FT said.

And with consumer sentiment in the US, where almost half Jaguars are sold, sliding after the attacks, predictions for sales for the rest of the year have been trimmed.

"The forecasts... have been affected, with the downturn likely to be faster and sharper," the carmaker is reported as saying.

The factory shutdowns are expected to reduce output by 1,700 cars, the paper said.

And other European carmakers dependent on US sales are also reviewing output.

Ambitions

Jaguar's shutdown confirms the ambitious nature of a target set at the beginning of the year of breaking the 100,000 barrier, in worldwide car sales, this year.

US sales are, at 29,844 for the first nine months of the year, 8.7% down on last year.

And it follows the well-publicised onset of an aviation trade crisis blamed on a slump in passenger numbers following the 11 September attacks.

A slide in consumer sentiment was confirmed on Monday by a University of Michigan report showing confidence had declined to an index figure of 81.8 points last month, compared with 91.5 points in August and 106.8 in September 2000.