The Japanese carmaker's northern England factory jumped to the top of the European league, producing 98 cars per employee in 1997, almost 272,000 in all.

This put it ahead of any other plant in Europe or North America, the survey by the Economist Intelligence Unit (EIU) showed.

Some Japanese car factories surveyed were the only ones to better the Sunderland performance.

The Sunderland plant recorded a big improvement on the previous year's 73 cars produced for each employee to put it well ahead of Europe's second best - General Motors' Opel plant in Eisenach, Germany which produced 77 cars per worker.

Italy's Melfi Fiat factory and the Volkswagon plant in the Spanish city of Navarra were next best with 70.

The EIU said productivity levels in European car production were generally on the rise.

Rover almost bottom of the league

However, Rover's Longbridge plant was among the most inefficent in Europe, producing just 33 cars per employee last year.

Car making productivity is on the rise

It was Rover, now owned by BMW, that threatened earlier this year to move production abroad saying the high value of sterling made it hard to compete. It has now annnounced that it will lay off 1,500 workers.

That drew criticism from Chancellor Gordon Brown who alleged its poor performance had more to do with low productivity.

Bottom of the league was Peugeot Citreon's French plant at Sochaux, which made just 25 cars per employee and Volkswagon's Emden plant in Germany with 28.

Nissan cost drive

Nissan's Sunderland success has been attributed to rising demand for its cars in Europe combined with the company's worldwide drive to cut costs.

Other Japanese car plants in the UK saw productivity levels decline in 1997 with Honda's Swindon plant placed seventh making 62 cars per worker and Toyota in Burnaston, Derbyshire coming 12th with 58.