Clutch manufacturer AP Driveline has gone into administration due to a slump in demand.
The Leamington Spa based firm, which makes clutches for vehicle manufacturers and the aftermarket, is part of the Magal Engineering Group, reports the ABP website.
CEO Gamil Magal said he hoped the company could continue trading as a going concern.
Magal said the business would trade as normal while administrators searched for a buyer.
He added: “There’s a lot of interest. It’s a good brand and a good workforce so we’re hoping to find a buyer or someone to be a partner.”
When asked if redundancies would follow Magal said this was always a threat and nobody's job was guaranteed.
AP Driveline employs 227 people and has a turnover of £18 million a year, according to the ABP website.