An estimated 18,000 people are employed across the Midlands by firms in the automotive industry who supply parts to MG Rover.
Stadco has been a long standing supplier of body components and sub-assemblies to MG Rover.
Its business with MG Rover was mainly handled at two of Stadco's eight plants, both of which supply a number of other customers, including BMW, Ford, Land Rover and Jaguar. Supply to these customers is unaffected by the current situation.
"Stadco has recognised for some time that MG Rover might not survive. Given this eventuality, Stadco is having to discuss the inevitable impact on employment levels with its employees at the two plants concerned," says the company in a statement.