The domestic automotive market in Western Europe is under threat from excessive regulation and inflexible labour laws, according to the world's largest car manufacturer.

General Motors' chief financial officer John Devine says that the production of cars in the region will dwindle if European legislation continues to prove obstructive.

Speaking to the Financial Times at the Paris Motor Show, Mr Devine insisted that consumers were already turning to foreign-produced vehicles, with the current legislative climate - such as Germany's 35-hour working week and the new European emissions requirements - exacerbating the trend.

"If the present trends continue we won't be in the manufacturing business, not only in autos but in other businesses as well," he said.

"We will be importing them from other parts of the world, probably Asia."

"The combination of these [regulatory and social] factors is really gutting the effectiveness of the European manufacturers and reducing their profitability. Over time that will reduce their inclination to manufacture in Europe and I'm pretty sure that's not good for Europe," he concluded.

The fears were played down by Renault chief executive Louis Schweitzer, but the warning from the world's number one manufacturer is likely to attract attention.

General Motors has already announced cuts to its European manufacturing operations, with some factories potentially facing closure.