PRICING pressure in the automotive industry as well as the closure of one business stream resulted in turnover at Glasgow-based axle-maker Albion Automotive falling by 32 per cent while losses widened by 40 per cent in the 2016 calendar year.

The firm, which is owned by US-based American Axle & Manufacturing Holdings and counts General Motors Chrysler as its largest customers, said the closure of its transfer box business at the beginning of the reporting period as well as intense pricing pressure had an impact.

“As general and industry specific conditions have improved, intense competition, volatility in fuel, steel, metallic and other commodity prices and significant pricing pressures persist within the global automotive industry,” said director Garry McFarlane.

“Some of our competitors have economic advantages compared to our business such as patents, existing underutilised capacity and lower wage and benefit costs through supply base consolidation and global sourcing”.

Despite turnover falling from £37.2 million to £25.3m and losses increasing from £2.5m to £3.5m, the company said its American owner had pledged to provide “any necessary financial support” for “the foreseeable future”.

The company, which is based in the Scotstoun area of Glasgow, is focusing on cutting its cost base and in 2016 reduced its wage bill by £1.7m after reducing its headcount by 45 to 119.

All job losses came from its production line.