Coventry’s engineering firm Penso Consulting, which worked with Jaguar Land Rover, was wound up and around 100 employees laid off.
Staff were told that the design office, based at Woodhams Road near Siskin Drive near Tollbar Island, was being wound up and was laid off last Monday (May 17).
An announcement was made by the directors and the staff subsequently received a letter containing the announcement and confirming their dismissal.
The letter, signed by Managing Director Dave Roche and COO Jevon Thurston-Thorpe, read: “It is with great sadness that I write to inform you that Penso is going to be wound up as a company.
“I am therefore writing to you to confirm that as a result your position at Penso Consulting Ltd will be made redundant.”
The letter went on to say that the company had been hit hard by the coronavirus pandemic and its impact on the global automotive and aerospace industries.
He added: “As you know, at the beginning of last year, the impact of the global pandemic saw the immediate halt in demand for all of the group’s main activities.
“Auto OEMs have canceled development of new vehicles, the aerospace industry has canceled all production of new aircraft, and demand for new taxis has fallen to zero, due to lockdowns and travel restrictions.”
The letter from the directors said the company responded to the downturn by bringing the Light Pod to the door-to-door delivery market, but another blow was the semiconductor shortage which caused a downturn in automobile industry.
He said, “As a result, a number of OEMs have stopped production, which has had a direct impact on the group’s ability to generate Pod sales.
“As the company is already facing significant financial pressures from the global pandemic, the additional financial needs caused by the semiconductor shortage mean that significant additional cash would be needed to secure our future.
“Therefore, with no immediate alternative funding available, we have no choice but for the group to initiate insolvency proceedings today.”
The letter added that the decision had “not been taken lightly” and that all alternatives to the liquidation of the company had been “taken into consideration”.
In addition, the board of directors “has done its best to keep the business going.”
The letter ended by directing employees to information about the claim for legal payments and thanking the workers for their service and contribution to the company.
In June 2016, Penso received £ 1million from Finance Birmingham to help secure a deal that created 20 new jobs.
Money was invested in tools to produce a new Mercedes taxi
Keep up to date with all the latest local news through our daily newsletter