Engineering group GKN has said it has cut 2,800 jobs globally since October and may have to shed more because of the slump in the global car industry.
The UK firm, which supplies carmakers including Land Rover and Ford, said it had cut 242 UK positions so far.
GKN said all its car part plants were now continuing to work shorter weeks due to the falling demand.
Car firms are meeting Lord Mandelson later for talks on the government's £2.3bn loan guarantee package.
GKN said that its automotive business made a loss in both November and December, and that conditions in the global car industry had continued to decline since then.
As a result, it said it was moving ahead with further "selected headcount reduction programmes".
The Redditch-based firm has four UK factories manufacturing car parts in the West Midlands and Telford, that currently employ 2,000 permanent staff out of a UK total of 6,300.