Currently reading: Wagon enters administration

UK's largest part supplier in danger of closing, putting 500 jobs at risk

Wagon Automotive, one of the UK’s biggest car parts makers, has called in the administrators this morning, putting 500 UK jobs in jeopardy.

Talks to save the firm - which has an annual turnover of £860 million and makes panels for Honda, Ford, General Motors, Land Rover and Nissan – collapsed over the weekend after banks refused to lend it any more money.

The supplier employs around 4500 people across Europe.

Wagon needed a €50 million (£43m) funding package to stay afloat. It’s understood that €30 million (£25.9m) had been secured from the car makers it supplies, with a further €10 million (£8.6m) added by boss Wilbur Ross.

But crucial lender the Royal Bank of Scotland declined to offer the final €10 million (£8.6m) to keep the firm going.

Will Powell

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