Peugeot has announced that it will cease production at its Ryton plant near Coventry next year.
The company cited the plant's high production and logistical costs as the reason for the closure.
The plant will cut from two shifts to one this summer, with production coming to an end by the middle of next year. More than 2300 jobs are affected.
The factory currently produces the 206 supermini but its demise had been expected after parent company PSA Peugeot Citroen decided not to build new models such as the 207 at Ryton, preferring plants at eight other sites across three continents.
It's another blow to West Midlands car production following the closure of Jaguar's Browns Lane and MG Rover at Longbridge last year.
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