More than 600 jobs at risk at BA and car parts firm
Monday 08 December 2008
The imminent administration at Wagon Automotive and cuts by British Airways threaten more than 600 UK jobs as the chill of recession spreads from the financial sector to the manufacturing and transport industries.
Wagon, which employs more than 500 people in the UK, is set to appoint administrators for its British operations this week after car makers cut orders for Wagon's vehicle components. BA said yesterday that it would cut more than 100 jobs at Gatwick airport as part of a plan to reduce services there by 15 per cent from the middle of next year. The cuts to ground staff will be made voluntarily as aircraft based at Gatwick are reduced from 41 to 37, the airline pledged.
Wagon, controlled by the American tycoon Wilbur Ross, has plants in Walsall and Coventry and a head office in Birmingham, with a total workforce of more than 4,500 across Europe. The Walsall factory produces panels and door parts for car manufacturers inc-luding Honda, Ford and General Mot-ors. The Coventry operation makes shock absorbers for non-car-maker customers including Otis and Schind-ler. In Europe, Wagon's biggest clients are Renault, Peugeot and Citroen.
Car makers are cutting production as the economy slows and Wagon was hit by a series of reductions to output made by its clients. The final straw came when Wagon's banks refused to back the company with €12m of backing that would have kept it going for three more months. All the plants are likely to keep running until buyers are found, with only the UK operations to be put into administration this week.
Mr Ross owns about 85 per cent of Wagon after shareholders shunned a rescue rights issue in August, leaving the billionaire to pick up the unsold stock. He stepped down from the board earlier this month.
Newcastle winger is in Argentina having chemotherapy
Returning to the stage after 20 years makes actress feel 'nauseous'
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Grandmas keep accidentally tagging themselves as Grandmaster Flash on Facebook
- 4 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
- 5 Kanye West halts concert after two fans don't stand up - doesn't realise one is in wheelchair and the other disabled
Islamic State: Pope is 'being targeted by Isis', Iraqi ambassador to the Holy See warns
Jennifer Lawrence and Kate Upton nude pictures exhibition cancelled after artist concedes photos were 'stolen property'
Scottish independence referendum: A nation divided against itself
John Travolta addresses former pilot's gay romance allegations publicly for the first time: 'That was the lowest I'd ever felt'
Richard III: Two years after his body was found scientists discover how he died
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...