This is a massive blow and signals the end of volume car manufacturing in Coventry.

Manufacturing costs in our Charlotte facility are higher than any other Continental tire plant worldwide, and we have been very clear from the start that we cannot continue in our current situation.

The one small grace in this is that the ripple effect on the whole economy will not be as severe as might be expected.

The number of jobs lost at the company is obviously a severe hit on the local economy.

In Ontario, job losses in manufacturing have accelerated in recent months alongside announced layoffs in the key auto sector. However, Ontario's economy is well diversified and strength in the service sector, which accounts for more than 70% of overall employment and economic activity, should support vehicle sales of about 590,000 units in 2006 - in line with the average of the past two years.

This would be an indication that activity is increasing at more than half the manufacturing firms in the survey, and another sign of growth.