More job losses at GKN are on the way as the automotive group announced it was accelerating its plant rationalisation programme that will see further factory closures in North America and Europe.
A GKN spokesman declined to say exactly where the affected plants were or how many jobs could be at risk, but the group is budgeting for an extra £25 million of restructuring costs to cover the cost of the programme next year.
He said it was far too early to speak about any specifics or whether the programme would affect any of the company's holdings in the Midlands, which employs around 2,700 people.
The company, which has its corporate HQ in Redditch, also has plants in Lichfield, Telford and Birmingham.
In a trading statement covering the eleven months to the end of November, GKN also revealed that it would be making an asset writedown of £25 million in its Powder Metallurgy division this year, while a more concerted push to move more production to low-cost economies would result in an additional £20 million of asset write-downs and impairment charges.
"We thought GKN wanted to 'tread water' with regard to the Powder Metallurgy restructuring, but the accelerated move is potentially a response to General Motors and Ford following the US production cutbacks," said investment house Citigroup.
Both GM and Ford have recently announced massive cutbacks in production withFord closing at least ten plants over the next five years.
GM has announced similar plans to bring down costs and will look to close nine production plants.
However, analysts noted that GKN's total exposure to GM in North America only amounts to about £100 million of revenues or less than three per cent, while GKN also played down the impact.
"Our customer and model mix has limited our exposure to some of the sharp volume reductions seen in US automotive market and we've been able to offset some of the decline through taking on work with other global OEM companies," GKN said.