The continued uncertainty over the future of MG Rover has spread waves of uncertainty among automotive component makers in the Midlands.

The future of up to 15,000 jobs hang in the balance at companies supplying parts and assemblies to the Longbridge car maker.

Continued delays to the deal with Shanghai Automotive Industrial Corporation and fears it may even collapse have raised fears among supply chain firms.

Russell Luckock, head of Birmingham press work company AE Harris, said many suppliers to MG Rover were particularly concerned in relation to their outstanding accounts.

He said: "I am given to understand that a number of companies have been firming up their terms of business, with a view to curtailing their losses, should administrative receivers be appointed.

"If this pressure mounts, it is very doubtful that MG Rover will be able to continue. The inevitable result, firstly, would be a major question mark over the future of the company's 6,000 employees, and secondly there could be a domino effect on the finances of Rover's many suppliers."

But Mr Luckock said there may be some hope for companies even if MG Rover collapsed.

He said: "There may, however, be life after death in this instance.

" The Chinese are very shrewd and clever negotiators, and surely, from their point of view, it would be a better option to do a deal with the receivers, starting with a clean sheet of paper, than take on the problems of the existing company.

"This could well involve the retention of a considerable number of jobs, particularly in relation to the production of the Rover 75.

"It would make little sense to transfer this model to China for production, as the cost would be too great. The car has had a favourable reception from the public and I am sure that sales could be further developed, especially if purchasers have confidence in an on-going future, so far as spares and service are concerned.

"There would, of course, be a considerable number of redundancies, which would be absolutely tragic for the loyal and skilled workforce so affected. However, I am quite certain that John Moulton, of Alchemy, is watching from the wings.

"It should be remembered that he was keenly interested in the MG side of the business, which, at the time, would have resulted in some 2,000 jobs being safeguarded, let alone a certain amount of work for the component suppliers."

Frank Watts, managing director of Automatic Precision Turning, said: "If MG Rover was to close it would be catastrophic.

"The manufacturing base in the Midlands is already suffering with rising prices of steel, and the uncertainty over Rover is having a knock-on effect.

"There could be thousands of jobs lost on top of those at Longbridge.

"It is like we are waiting for a recession. We are all in this together, and it is a terrible strain for many firms who have tried to diversify.

"If they could get out of automotive supplying they would."

Another component maker, who asked not to be named, said everybody hoped MG Rover would survive, but was preparing for the worst.

He said: "We have started a new contract with MG Rover, but we do not know if it is going to proceed.

"The uncertainty is very damaging. A lot of companies do not know whether or not to buy the steel to make the parts for Rover.

"They don't want to be left with raw materials when they don't have a customer for their components, but they don't want to be left without the materials to make the parts either.

"This uncertainty is very damaging. I think there is a lot of gamesmanship going on, but this needs to be sorted and soon."

He added: "The uncertainty must be having a negative impact on the sales of Rover cars, which means there is going to be less of a need for components in the future."

Ian Smith, chief executive of the Engineering Employers Federations, said that whatever happened jobs could be lost.

He said: "Whether Rover closes or not there will be a transfer of jobs to China.

"There is huge concern out there among automotive component makers and it is important the deal is done.

"But if it were to go, we have shown our companies can compete and diversify and they might have to do that again."