GKN has set aside £120m to pay for costs this year of short-term working, plant shutdowns and redundancies, as the auto parts maker announced the loss of 1,400 more jobs in the past two months.

Its automotive unit made a loss in November and December, reported Financial Times.

Chief executive Kevin Smith welcomed financial lifelines from government, but said in the medium term what will make the difference is people buying more cars.

GKN said it was reviewing a further restructure that could include “significant” shutdowns of plants or putting employees on to shorter working weeks.
 

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