The collapse of MG Rover claimed more jobs today when a firm which used to supply the carmaker with body panels announced it would close, with the loss of 200 jobs.
Coventry-based Stadco said it had “no alternative” because it did not believe anything substantial would emerge from the ashes of MG Rover.
The grim news came on the last day for any offers to be made by potential buyers for the collapsed car manufacturer.
The administrator, PricewaterhouseCoopers, has warned that assets will begin to be sold off from next week if viable proposals were not received.
Stadco had already laid off workers when MG Rover called in the administrators last month and said it had been hoping that a future would be found for some parts of the business which used to supply the Longbridge firm.
Managing Director, Andrew Morris, said: “We have been hoping that something would emerge from the ashes of MG Rover but it is now clear that nothing substantial will.
“We have also explored other opportunities to support a reduced business but it has not been possible to produce a plan that would turn Coventry into a sustainable operation.
“The loss of the MG Rover work undermined the viability of the Coventry operation and studies in the last few weeks have shown that we can undertake the remaining activities – largely for clients such as Jaguar and Aston Martin – at our other operations in the UK.”
The closure of the Coventry factory will be phased over the next year.
Peter Coulson of Amicus said the union was worried that the firm was acting with “undue haste.”
He added: “We urge them to enter into discussions with us as soon as possible to try to save the plant.
“This is another devastating blow for Coventry which has already seen job losses in the last few months at Peugeot, Massey Ferguson and Marconi.”
The Task Force set up to help the thousands of redundant MG Rover workers has helped 100 people to begin new jobs, it emerged today.
Nick Paul, the chairman of the MG Rover Task Force stressed that there was still a “long way to go” in helping thousands of other jobseekers.
“The first 100 former Rover workers have started new jobs. This positive development shows their determination to bounce back and the fact that many have the skills which new employers are looking for.
“However, it is only a start. There is still a long way to go before the remainder of the 5,000 or more employees from MG Rover, its supply chain and at other companies like Marconi and Peugeot are found new jobs and we are working around the clock to help them do just that.”
The Task Force aims to have 2,000 individuals booked onto a training course by the end of next week.