Nearly 300 jobs were lost at failed car parts firm Wagon today after administrators began the wind-down of its Walsall manufacturing base.

The Brownhills site makes panels and door parts for Honda, Ford, General Motors, Land Rover and Nissan, but attempts to sell the operation failed as business dries up amid the woes of the global automotive industry.

Zolfo Cooper partner Alastair Beveridge said 292 staff had been laid off.

He said: "Understandably, the current trading conditions have made it very difficult to secure an ongoing commitment from Wagon's customers, and we have therefore been left with no option but to close the Brownhills facility."

Administrators are now looking to sell off the Brownhills plant and equipment as workers lose their jobs.

"We appreciate this is very disappointing news for all of those who have worked so hard to save this business, and we would like to thank them for their unwavering support throughout the administration process," Beveridge added.

Birmingham-based Wagon, which employed around 500 staff in the UK, has another site in Coventry which remains open for the time being.

The company was forced to call in Zolfo Cooper last week following the breakdown of talks with banks over a funding rescue package.

Wagon's fate was reportedly sealed when banks, led by government-backed Royal Bank of Scotland, refused to contribute €12m (£11.2m) to a €50m funding package.

As well as its UK staff, the company employs 4,500 people across Europe.

A decision on whether to put the overseas companies into administration had not been taken, although Wagon said last week that some may be able to trade without needing insolvency protection.

Wagon has been hit by competition from low-cost rivals and a car market slump.

According to the latest figures from the Society of Motor Manufacturers and Traders, a total of 100,333 new vehicles were registered last month - a huge 36.8% fall on a year earlier.