08/09/2009
UK car parts manufacturer files for bankruptcy
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In a sign of the times it has been confirmed that the UK subsidiary of Visteon Corporation, which was formerly part of the Ford group, has today filed for bankruptcy with the potential loss of 600 jobs in the UK. The business has three car plants in Basildon, Belfast and Enfield making a range of components for the car industry. However, business has been bleak of late and the owners have today taken the first step towards closing down the business.The UK authorities will now have to answer serious questions regarding their conduct over the last few weeks when money has been promised for the industry but never delivered. There have been claims of severe delays, obstructions and a basic lack of urgency amongst those in charge of the purse strings. Those who follow this site will know that the UK authorities have on numerous occasions refused outright financing and instead considered loan packages. However, even these packages have not been forthcoming.The knock-on effect to the rest of the industry could be swift and deadly with suppliers and those involved in the car industry policy more concerned about their own cash flow and financial security. Whether this move prompts similar actions across the board remains to be seen but this could be the straw which broke the camels back.
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