Black cab builder LTI is to stop manufacturing parts at its Coventry plant, resulting in a loss of 60 jobs.
Instead, the parts will be made in Shanghai and shipped to the UK before being assembled at the Coventry base.
The company has blamed the decision on heavy losses in 2009.
LTI’s parent company, Manganese Bronze, lost £7.3 million last year.
It is estimated the change will save the company up to £4 million.