More than 400 jobs could go at a car component supplier which counts major names such as Jaguar Land Rover and Nissan among its clients.
Coleshill-based manufacturer Sertec is consulting 428 staff at six plants across the region, according to trade union Unite.
The union said Sertec had announced the redundancies, which represent around a third of its 1,300 staff, while the majority of its workforce was currently furloughed under the Government's job retention scheme.
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The potential redundancies affect employees at its factories in Coleshill, Hams Hall, Tyseley, Witton, Aston and Redditch in Worcestershire.
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Unite's regional officer Jason Richards said: "This is another bitter blow to the automotive industry in the West Midlands.
"Unite is seeking urgent meetings with Sertec to persuade them to reverse this decision or delay it so that a more accurate assessment of the automotive sector can be made.
"This is a premature decision as most of the workforce is currently furloughed.
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"The Government's job retention scheme was not designed as a vehicle to make workers redundant.
"By undertaking a redundancy programme while workers are furloughed, Sertec is denying Unite its legal right to meaningfully consult with union members and allow the union access to the entire bargaining group.
"This is impossible when the workforce is furloughed under a scheme that specifically precludes employees from working.
"Unite will ensure all affected workers are treated fairly and receive everything that they are legally entitled to."
Sertec had not responded to a request for comment at the time of publication.