Car parts maker Bosch could axe 900 jobs at its south Wales plant following falling sales.
The plant in the Vale of Glamorgan has made alternators since 1991 but sales fell 45 per cent last year and are expected to drop further.
Company chiefs will be discussing potential job cuts with the 900 staff, although there is a second option to lose 300 positions.
MPs are understood to be meeting the with the divisional president of the company to discuss the options.
"Bosch is currently facing the worst economic downturn for many decades," said the company in a statement. "At the same time, the automotive industry is undergoing major changes as core technologies are completely transformed."
The firm said that, as a result, "It is not possible for Bosch Cardiff to make commitments for the future under current circumstances without in-depth technical and commercial analysis".