LONDON — Arlington Automotive is laying off employees after the coronavirus outbreak forced the supplier to appoint administrators in the U.K. to restructure the company.
Arlington’s operations include making bespoke thermostats and the assembly of vehicle systems. The company supplies Jaguar Land Rover, Ford and Nissan.
The company did not specify how many staff are being laid off. It employs around 600 people at several locations in Britain.
“The financial issues faced by the group have been compounded by coronavirus,” said joint administrator Allan Graham in a statement. “New-car registrations have fallen dramatically and the complexity of supply chains in the sector have led to a sudden halt to manufacturing.”
Restructuring acquisitions, including a German business bought last year, and uncertainty around Brexit and tariffs have also contributed to problems, according to joint administrators Duff & Phelps.
Other subsidiaries of Arlington International Group, which operates in countries such as France, Germany and China, are not affected by the restructuring in Britain.
“The UK Group has longstanding and deep-rooted relationships with its customers, and I am confident that the restructured business will be a key supplier to the automotive industry moving forwards,” said Arlington International CEO Mark Franckel.
COVID-19 has seen car factories halt output, pushing down British production by 14 percent so far this year.
