Hundreds of workers at a car parts firm were told yesterday that the company has gone into administration after its largest customer also folded.
British firm Sonas Automotive employs 200 people in the UK at plants in Tyseley, Birmingham, and Wantage in Oxfordshire.
It also has four plants in France and supplies car-makers like BMW, Ford and Honda with components.
It reports an annual turnover of £143 million and employs 1,100 people across the UK and France.
Sonas was formed in a management buy-out of elements of Birmingham-based components group Wagon, which has itself put its UK operations into administration.
The company bought the old Bloxwich Engineering business in Walsall but closed it and moved operations to Tyseley.
Administrators, PricewaterhouseCoopers said that Sonas was placed into administration “due to the current uncertainty in the automotive sector”, and as a result of the failure of customer Wagon Automotive.
Matthew Hammond, partner and joint administrator at PwC, said: “The difficulties facing the automotive industry at this time have been well documented and it is unfortunate that this company has been forced into administration partly as a result of the administration of its largest customer, and difficulties within Sonas’ business interests in France.”
He said that while they were looking for buyers to rescue the business, “the enormity of this task in the current environment cannot be over-emphasised, particularly as much of the industry is now in a prolonged holiday period shut-down.”
He added he was grateful for their continued support from key suppliers as many have agreed to provide ongoing key supplies.
PwC will be reviewing the position of the business and the impact this will have on short-term job security.