Monday, December 08, 2008

UK car parts firm jobs threatened

The UK arm of leading European car parts business, Wagon Automotive, looks likely to go into administration.

A last-minute bank refinancing deal to tide it over the next few months is understood to have fallen through.

Birmingham-based Wagon Automotive employs 500 workers in the West Midlands and supplies parts to Ford, Honda, General Motors and Nissan.

The company, which employs 4,500 people across Europe, (around 500 in the UK) has struggled because of the slump in the car market.

Several of its customers have cut back production or temporarily shut plants in order to reduce their own costs.

While Wagon Automotive's UK business is expected to go into administration this week, the future of its other factories is still to be worked out.

All Wagon Automotive's plants are expected to remain in operation while buyers are sought.

Read the full story at BBC News

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