A CAR parts company based at Birmingham Business Park, near Chelmsley Wood, is facing collapse, threatening more than 600 jobs across the West Midlands.
Wagon Automotive plans to appoint administrators but all its plants are expected to remain in operation while buyers are sought.
A report in a Sunday newspaper said the international company, controlled by American millionaire Wilbur Ross, had failed to persuade banks to contribute to a funding package that would have kept it running for another three months.
The demise of Wagon Auromotive follows a spate of closures, shutdowns and job losses in the motor industry - and there are more to come, according to Jerry Blackett, chief executive of Birmingham Chamber of Commerce and Industry.
"The bad news is stacking up," he said. "And it is not just the manufacturers now, but the supply chain suffering the knock on effects.
"There is no slack in the system for suppliers. It is a very lean supply chain as companies do not carry much stock.Wagon will not be the last."
Mr Blackett added that the chamber was being inundated with calls for help from suppliers who were hoping to get through the next two or three months to see if things started picking up at the end of January.
"We have to keep jobs going for the future. It does not help anybody if people are put out of work and on benefit."
Wagon, whose head office is at the business park, has a factory in Brownhills which makes door panels for Honda, Ford, General Motors, Land Rover and Nissan. A smaller site at Exhall, Coventry, supplies shock absorbers to non-automotive clients including lift makers Otis.