Workers at the Peugeot car factory in Coventry are staging a second 24-hour strike over working hours.

A similar stoppage on Thursday cost the company an estimated �6m in lost production of its 206 model.

An all-out strike is threatened from the end of the summer shutdown on 21 August unless the dispute is settled. It would be the first complete stoppage at the factory in 20 years.

The strikes follow a narrow rejection by members of the Transport and General Workers' Union (TGWU) and the Amalgamated Engineering and Electrical Union (AEEU) of a new offer aimed at achieving a shorter working week.

Friday evening shifts

Union officials had recommended acceptance of the offer aimed at securing a cut in the working week from 39 hours to 36 and three-quarter hours.

But workers were angry that some could be forced to work Friday evening shifts and rejected the offer by 1,270 to 1,239.

Talks between union leaders and company officials will resume on Monday, with both sides saying they are determined to find a breakthrough.

There is concern the dispute could jeopardise Peugeot's future investment in Britain at a time when car manufacturing is suffering because of the strength of the pound against the euro.

It comes only two months after the giant Rover car plant up the road at Longbridge, Birmingham was saved from the axe by a British consortium.