Wagon Automotive, one of the UK’s biggest car parts makers, has called in the administrators this morning, putting 500 UK jobs in jeopardy.
Talks to save the firm - which has an annual turnover of £860 million and makes panels for Honda, Ford, General Motors, Land Rover and Nissan – collapsed over the weekend after banks refused to lend it any more money.
The supplier employs around 4500 people across Europe.
Wagon needed a €50 million (£43m) funding package to stay afloat. It’s understood that €30 million (£25.9m) had been secured from the car makers it supplies, with a further €10 million (£8.6m) added by boss Wilbur Ross.
But crucial lender the Royal Bank of Scotland declined to offer the final €10 million (£8.6m) to keep the firm going.
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Re: Wagon Automotive in administration
Wagon is the world famous brand name in automobile industry. It should be admired and the banks and government should help to establish the new firm of the company to increase the potential of the company because it will generate great revenue to the nation and create a lot of jobs for the needful people.
Steven
<a href="http://www.administrationjobsuk.com">administration jobs</a>Re: Wagon Automotive in administration
Just as a mega quick note, have a look at the SFLG scheme; the gov has changed it for the better!!
You can now get the SFLG scheme for R&D (or percentage R&D) whereas before you could not and now no age limit applies to the businesses which apply i.e. before you had to be under five years old......now that restriction has gone......!!! (happy days!!)
The only restriction now is a cap on turnover or profits (I forget which) but cutting a long story short, the gov. did a great thing when they altered the scheme, before it seemed more service/existing firm targeted (excluding R&D) and now it does not exclude developing firms and those with new products/R&D (its fantastic!!).....a big move forward!....go on Gordon! (the "Big G"!!)
Re: Wagon Automotive in administration
A small business I used to work went to their bank around 3 years ago to get money for product development,. They were turned down but told they could have more to expand the factory instead.Given that the previous owners of this business had stinted on product development for many years the investment was overdue but the bank was not interested.
I believe this is all down to banks demanding rates of return that cannot be realistically obtained from day-to-day commerce. Given that recent events have demonstrated that supernormal profits cannot be obtained indefinitely it is high time that the banks are encouraged or pushed into supporting ordinary profitable businesses.
I wonder whether modulating the property market as they do in Singapore (where the government itself is one of the biggest property developers) would persuade the banks to look more seriously at industry?