EUROPE: EUROPE'S RECORD CAR JAM.

European manufacturers need a revolution - but Britain has made a start.

Europe's car makers are in trouble. In a savage recession surpassing the impact of the early 1970s oil shock, sales have plummeted by nearly 18% in the first seven months of this year with 1.5 million fewer cars sold than in the same period of 1992. By the end of 1994, west European car production is expected to have fallen by two million vehicles or 15% to 11.4 million from 13.4 million in 1992 according to DRI, the motor industry analysts. The slide is so precipitous that a manufacturer the size of Fiat or Renault would have to shut down to bring the market into anything approaching equilibrium.