Up to 180 jobs are under threat as a car component manufacturer considers closing its plant in Telford.
Mahle said its decision was due to a decline in order levels and a “planned reduction in investments and production locations”.
The firm said the Halesfield 25 site in Shropshire was “no longer sustainable” and it was carrying out a collective consultation process.
Experts said it was “a sign of the times” for the UK automotive industry.
German-based Mahle make engine systems and components used for mobile machinery, rail transport and marine applications throughout the world.
It said declining order levels “are expected to deteriorate even further”.
In a statement, Mahle said: “Against this backdrop, the competitiveness of the location is no longer sustainable despite the continuous investments of recent years.
“Mahle therefore is considering the closure of the production location in Telford and consultations will commence with employee representatives shortly.”
‘Tipping point’
It added it would “explore all possible alternative measures and minimise the potential impact on staff.”
David Bailey, a professor of economics at Birmingham Business School, said the UK auto industry was “at a tipping point” and was “reeling from falling output and sales, due to the big shift away from diesels, falling sales in China and Brexit uncertainty.”.
In 2018 Mahle generated sales of over £11 billion. It has more than 79,000 employees over 30 countries.
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