Jobs to go at car parts company

Car parts firm Wagon is due to go into administration after talks with banks over a funding rescue package for the ailing company broke down.

The move will leave around 500 jobs under threat - mainly affecting workers in Coventry and Walsall in the West Midlands.

In October, Wagon reported a "steep deterioration" in the European car market and said it was in talks with lenders about its funding situation. It has come under further pressure from low-cost rivals and a car market slump.

The firm's factory in Walsall produces panels and door parts for Honda, Ford, General Motors, Land Rover and Nissan, while the smaller Coventry site makes shock absorbers for non-automotive clients.

Following its appeal for funding, Wagon's car-making clients had put up £26 million and the company's boss, American billionaire Wilbur Ross, was understood to have been prepared to contribute £8.7 million through the purchase of one of Wagon's subsidiaries.

But the rescue fell though when the banks - which had agreed loans of £134.2 million in the summer - decided against giving more, according to reports.

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