Earlier this year, John Hutton, the Business Secretary, toured Toyota’s Burnaston factory to highlight the strengths of British manufacturing. He probably won’t be making the same visit when he does his cheerleading routine again for the imminent launch of the Government’s manufacturing strategy.

Burnaston has become the first UK car factory to announce big production cuts during the current economic downturn.

The cuts are limited, temporary (so far) and fairly measured because permanent jobs are not being lost immediately.

But they are all the more worrying because they come from Toyota, a company that until recently could do no wrong.

While we have been used to the enormous and frequent restructurings by Ford and General Motors in the US, Toyota has seemed an oasis of zen-like calm and foresight.

It has not left itself badly exposed to the fashion for big, brash off-roaders and it has been ahead of the game for environmentally friendly vehicles with the Prius.

It has also looked to the long term when some of its rivals have been unwilling, or perhaps unable, to do so. Yesterday’s move on the UK factory and cut in sales forecasts underlines just how bad the global car markets are.

The motor industry is facing a perfect storm of headwinds — the credit squeeze, the high cost of fuel and rapidly growing environmental awareness.

Many drivers are looking to their wallets or consciences and either buying smaller cars or no cars at all.

The change in consumer taste is dramatic, especially in the US. So much so that executives at BMW, which makes the Mini, say that some motorists are trading in Hummers, the epitome of macho SUV, for the iconic British small car. A bit like swapping the rottweiler for a Yorkshire terrier.

In many countries the car industry is very important. In Britain it is the biggest segment of manufacturing and an area that the Government desperately wants to revive.

The Society of Motor Manufacturers and Traders estimates that the UK car industry supports more than 850,000 jobs through manufacturing, components and support services. The fact that Toyota is suffering bodes ill for other parts of the industry. Pendragon, the big dealer group, yesterday reported a sharp fall in profits and said that used car prices had fallen off a cliff in June.

The industry will be hoping that September can revive the flagging British market’s fortunes with motorists lured to showrooms for the new registration plate.

All the signs are that it will be hoping in vain.

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