British automotive engineering company Wagon said today it expected to appoint administrators after talks over future funding broke down in the midst of a slump in global car demand.
The company, one of Britain's largest car parts makers employing over 500 people in the UK, said corporate restructuring group Zolfo Cooper LLP is expected to act as administrator to Wagon and several UK subsidiaries.
"Decisions on the overseas group companies have not been made but it is anticipated that some may be able to continue to trade without needing insolvency protection," the company added.
Wagon, whose customers include PSA Peugeot-Citroen, Renault and Daimler, employs some 4,000 people at 20 plants in continental Europe.