FOUR hundred jobs in Wearside's automotive industry are under threat after car parts manufacturer Federal Mogul called in the administrators.

Federal Mogul, which counts Japanese car manufacturer Nissan among its customers, manufactures pistons and spark plugs. It has an order book of £18m.

Managing director Mel Dover, said: "The plant is not making money and there is little chance that will change.

"The downward movement in the market and the shift from petrol to diesel engines, has left the business unable to respond without major investment."

The company is part of US firm Federal Mogul, and for a while was operated as a joint venture between the US parent and the Teikoku Piston Ring Company (TPR) of Japan.

This week, TPR sold its share in the company back to Federal Mogul.

Simon Freakley, James Gleave and Peter Holder of Kroll Buchler Philips have been appointed as joint administrators to run the business.

Mr Dover said: "Despite the fact that we continue to trade, the prospects don't look good. It is likely that the business will be wound down over a period of months."

The staff are likely to be made redundant in phases.

GMB union regional organiser, Lee Ions, said: "This is a real body blow. We will be working with the receivers to try to secure the future of the business."

GMB Northern regional secretary Kevin Curran, said: "Manufacturing in the UK, and in this region in particular, continues to bear the brunt of a continuing recession in the sector.

"Federal Mogul has stated that they will be utilising their capacity in other European plants to fulfill the order book and have put the UK plant into receivership because it is easier to sack UK workers than anywhere else in the EU."

especially as the company has an order book of £18m

Unions have reacted angrily to the decision to call in the administrators.