The Western European car market is set for a period of stagnation according to Volkswagen's chief executive.

In an interview picked up by Reuters, VW chief Bernd Pischetsrieder reportedly told French newspaper Les Echos that he did not expect the market to grow next year.

While tipping Britain and Spain to enjoy small increases in sales, he described the 2005 Western European automotive market as "more or less stagnant".

"For next year . . . we are working with a scenario of a stable market, with no growth," Mr Pischetsrieder explained.

"In Germany we will be lucky if the market reaches last year's level, particularly after July and August were the worst months in over ten years," he added.

Mr Pischetsrieder's comments follow a disappointing round of sales figures in the latest results from the European Automobile Manufacturers Association.

The organisation revealed that sales fell by 0.8 per cent in August, as economic problems in the region's largest automotive market - Germany - hit home.