Car parts supplier Toyoda Gosei has confirmed plans to shut two factories in the UK, putting hundreds of jobs at risk.
The company has earmarked its plants in Swansea and Rotherham for closure.
Around 458 people are employed at both factories combined, with a consultation process now underway.
A date for the potential closures has not yet been announced.
Toyoda Gosei - which supplies parts for Toyota, Nissan, Renault and Honda - said it is looking to close its UK business after a fall in customer demand.
The company has been restructuring its European operations by moving some of its production to the Czech Republic.
In a statement on its website, the company said: “The proposal is in response to continued changes in the global automotive sector, and a significant reduction in key UK customer demand.
“Due to these changes, Toyoda Gosei does not foresee growth of its business there and has decided to make this proposal.”
The announcement from Toyoda Gosei comes after Jaguar Land Rover said it was suspending work at two UK plants due to a parts shortage.
The company blamed the coronavirus crisis for disrupting a supply of computer chips, which is affecting the manufacturing industry as a whole.
It comes just months after JLR said it will axe 2,000 jobs over the next 12 months, although it has yet to announce any redundancies.
Renault has also said its sales are being impacted by a shortage of computer chips, also known as semiconductors, and Honda said the dip in supply has led to production delays.
Honda similarly suspended production at its Swindon plant in January 2021 due to supplier delays.
