Arlington Automotive Group, a tier one parts supplier to Jaguar Land Rover (JLR), Ford and Nissan, has entered administration.
The Coventry-based business says the Coronavirus outbreak, and subsequent drop in new car sales, has compounded its financial difficulties.
It expects to continue providing parts to car makers, which include thermostats and engineered vehicle systems, following a restructure.
The business currently employs around 600 people at locations in Coventry, Newton Aycliffe, Reading, Stourport, Birmingham and Manchester. The firm’s Derby site has already started closing down and it is expected there will be significant redundancies.
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.”
Arlington Automotive Group is a subsidiary of Arlington Industries, but operations in other parts of the world – it has facilities in France, Germany, Brazil, USA, China and joint ventures in India and Turkey – will not be affected by the administration process.
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.
“However, the UK Group is underpinned by its strong core operating sites and post coronavirus will with its world-class technology, engineering and manufacturing base be well positioned to take advantage of the evolving car market,” he added.