The British division of Wagon, the car parts company, became the latest high-profile victim of the crisis gripping the global motor industry when it was put into administration yesterday.
The move puts 500 jobs at risk and there will be immediate cuts at the group's headquarters in Birmingham. However, Zolfe Cooper, the administrators, said that they hoped to sell Wagon's factories in Coventry and Walsall as going concerns.
Wagon makes parts for many carmakers worldwide, including General Motors, Ford, Honda, Nissan and Land Rover, and it intends to keep its operations outside the UK running as normal. The company, which is controlled by Wilbur Ross, the American billionaire, employs 6,300 people globally.
Wagon has been unable to secure extra funding for its global operation and has hit a liquidity crisis, its administrator said.
The company employs around 600 staff in the West Midlands