Arlington Automotive Group calls in administrators

Mon, 11 May 2020 | ADMINISTRATION

Car component supplier Arlington Automotive Group has appointed administrators from Duff & Phelps, as the coronavirus pandemic has a growing impact on the automotive sector. The company is the UK subsidiary of Arlington International Group. The group’s other ventures are unaffected.

Arlington employs around 600 staff at sites across the UK and supplies components for carmakers including Ford, Jaguar Land Rover (JLR) and Nissan. Other customers of the company include Aston Martin, Bentley and bus manufacturer Alexander Dennis. It also works on London’s black cabs.

The products it manufactures include thermostats for cars, while it also makes and assembles engineered vehicle systems. Its UK locations include Birmingham, Coventry, Derby, Reading and Stourport.

According to reports, those involved in the process are examining a plan to reduce Arlington’s number of sites, with a view to ensuring the business remains viable after the coronavirus pandemic.

It remains unclear how many of the company’s skilled workforce will face redundancy, but some job losses are thought likely. However, company executives are said to be confident that the administration process will allow it to secure the investment to safeguard its future.

Arlington International chief executive Mark Franckel said that he was “confident that the restructured business will be a key supplier to the automotive industry moving forwards, particularly our thermostat technology which is widely used in the rapidly growing hybrid and electric car markets."

According to figures from the Society of Motor Manufacturers and Traders, 4,321 cars were bought in the UK in the month of April, the lowest total since 1946. However, some manufacturers such as JLR have said they will seek to restart UK production this month.

According to its most recent accounts, to the year ended March 30 2018, the company saw losses of around £1.79 million. At the time of filing, its total assets amounted to £39 million.

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