The end of car production at Ryton was last night described as another nail in the coffin of the UK automotive industry.

Although not completely unexpected the demise of the plant, which employs 2,300 people, was described as a "callous" action by Peugeot.

Last night unions and council leaders demanded urgent talks with the French carmaker in a last-ditch attempt to make it reverse its decision.

Coun Ken Taylor (Con, Earlsdon), leader of Coventry council, said: "The announcement is a major blow to the city of Coventry and for Peugeot employees of the plant who have worked tirelessly to very high standards, and who have shown the highest levels of commitment to their employer.

"Although there has been uncertainty over the long-term future of the Ryton plant for some time, this news has come as a shock to us all.

"We want to make sure Peugeot's skilled and experienced workforce has all the support we can provide in finding new employment opportunities. "

He said: "Coventry City Council has been working closely with Warwickshire County Council to give Peugeot as much support as possible to make the Ryton plant sustainable - including looking at ways of siting a supply park close to the plant, and it is particularly disappointing that this work has not helped convince Peugeot they have a production future in this city.

"We are now urgently seeking a meeting with senior managers from Peugeot as soon as possible to discuss this."

Tony Woodley, T&G general secretary, branded the actions of Peugeot as "callous and absent of any social responsibility".

He said: "The announcement from Peugeot is another nail in the coffin of UK car industry.

"This has been the single biggest unkept secret in the car industry. It is not about losses at the plant or reducing capacity.

"The fact of the matter is that Peugeot has not been prepared to name a new product for the plant while at the same time as they've been pursuing expansion ventures in the East."

Mr Woodley was angry that Peugeot had given the minimum 12 week consultation period before the first redundancies are implemented in July.

"It is astonishing that this company has given only the bare minimum notice to sack 2,300 people."

Alan Durham, of Coventry and Warwickshire Chamber of Commerce, said: "This is a massive blow and signals the end of volume car manufacturing in Coventry.

"Peugeot and, before when it was Talbot, has been at the forefront of the motor industry in Coventry for decades and in recent times has a proud record of producing large numbers of quality vehicles.

"The number of jobs lost at the company is obviously a severe hit on the local economy and our thoughts are with those affected.'

Mr Durham said there had been rumours the closure may happen, but the exact timing had proved a surprise.

He said: "Peugeot as a company has been having a tough time, but the timing is right out of the blue.

"We expected something further down the line, but not today.

"In this day and age, large companies can transfer production between countries and even continents far easier than ever before. Damage to the supply chain will be assessed in the coming weeks, but we understand that Peugeot sources most of its parts and components from abroad.

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

John James, chairman of West Midlands branch of the Institute of Directors, said: "I am horrified by this decision which in many ways is more serious than the collapse of MG Rover.

"Rover was a product that was not greatly in demand in an oversupplied market, but Peugeot is a quality product, which makes money with a highly skilled workforce.

"When a company like that decides to move away it is very serious.

"Everyone was aware that the plant was under long term threat, and there was a suggestion that 2010 was the time it was going to close, allowing a phased shutdown.

"There doesn't appear to any consultation with unions or employees to allow that to happen.

"There should be a delay at the very least."