Redundancies are being imposed across Arlington Automotive Group after the Jaguar Land Rover (JLR), Ford and Nissan automotive tier one parts supplier entered administration.
Administrators Allan Graham, Jimmy Saunders and Matthew Ingram of Duff & Phelps were appointed to the UK trading companies in the Coventry-based Arlington Automotive Group on May 7 after the COVID-19 coronavirus crisis "compounded" its trading difficulties.
Its UK business employs around 600 at locations in Coventry, Newton Aycliffe, Reading, Stourport, Birmingham and Manchester and the firm’s Derby site has already started closing down.
Arlington Automotive Group is a subsidiary of Arlington Indutsries but operations in other parts of the world – it has facilities in France, Germany, Brazil, USA, China and joint ventures in India and Turkey – will not be affected by the administration process.
The administrators said that the current process had not come as a direct result of the COVID-19 coronavirus crisis but had been “compounded” by its effects.
Allan Graham said: “The financial issues faced by the Group have been compounded by coronavirus.
“New car registrations have fallen dramatically and the complexity of supply chains in the sector have led to a sudden halt to manufacturing.
“However, the UK Group is underpinned by its strong core operating sites and post coronavirus will with its world-class technology, engineering and manufacturing base be well positioned to take advantage of the evolving car market,” he added.
Arlington International chief executive, Mark Franckel, said: “The UK Group has longstanding and deep rooted relationships with its customers and I am confident that the restructured business will be a key supplier to the automotive industry moving forwards, particularly our thermostat technology which is widely used in the rapidly growing Hybrid and Electric Car markets, which utilise a greater number of thermostat products than conventional combustion engine vehicles.
“We remain excited about the growth potential of these markets and Arlington’s critical position in them.”