Arlington Automotive has appointed adminstrators with 600 jobs at risk as the economic impact of coronavirus continues to hit.
The company employs about 600 people across sites in Coventry, Newton Aycliffe, Reading, Stourport, Birmingham and Manchester.
Arlington's Derby site has already commenced closure.
It counts Jaguar Land Rover, Ford and Nissan among its customers base.
Joint administrator Allan Graham of Duff & Phelps said: “The financial issues faced by the Group have been compounded by coronavirus. New car registrations have fallen dramatically and the complexity of supply chains in the sector have led to a sudden halt to manufacturing.”
The joint administrators said they are working with stakeholders to ensure the group can continue to trade successfully into the future.
The UK Group is a subsidiary of the Arlington International Group, which includes operations in France, Germany, Brazil, USA, China and joint ventures in India and Turkey – none of which are impacted by the UK restructuring.
Arlington manufactures bespoke thermostats for vehicles and the manufacture and assembly of engineered vehicle systems.
Arlington International chief executive Mark Franckel said: “The UK Group has longstanding and deep rooted relationships with its customers and I am confident that the restructured business will be a key supplier to the automotive industry moving forwards, particularly our thermostat technology which is widely used in the rapidly growing Hybrid and Electric Car markets, which utilise a greater number of thermostat products than conventional combustion engine vehicles.
"We remain excited about the growth potential of these markets and Arlington’s critical position in them.”
