Fears are growing today that major redundancies are about to be announced at the Brownhills factory of ailing car-parts firm Wagon.

The UK arm of Wagon went into administration last week, and a factory employee, who declined to be named, said today that up to 80 redundancies were expected to be announced by administrators Zolfo Cooper today.

The Pelsall Road factory employs around 200 people making panels and door parts.

It is suggested the plant has been hit by the cancellation of at least one major order. It also supplies Honda, which is due to shut down its Swindon factory for two months next year.

A Zolfo Cooper spokesman would not confirm whether job losses were imminent.

In a statement the firm said: “At this point, 12 employees have been made redundant from Wagon plc after the business went into administration on December 8.

“The joint administrators are continuing to trade the business as a going concern while they assess all options. Further updates will be made as and when appropriate.”

A total of 500 people work for Wagon in the UK, at its Birmingham headquarters and factories in Brownhills and Coventry.