Car parts manufacturer Bosch said 250 jobs were at risk at one of its plants in South Wales.
The German company said it has started a 90 day consultation with staff at its Miskin plant, because of a "sharp decline in customer orders."
The plant, which makes alternators for the car industry, has already seen the number of agency workers slashed and announced an extended Christmas shutdown because of the downturn.
A Bosch spokesman said: "Due to the current difficult market environment, Bosch has experienced a sharp decline of customer orders in the last quarter of 2008."
She added: "We were hoping that 2009 would see a return in stability, but unfortunately our customer order reductions continue. As a result we will not have sufficient work to retain our entire existing Bosch workforce in full-time employment. As of now we expect that 250 jobs spread across all areas and functions within the plant are now at risk. "
This report was compiled by Justin Woodcock on behalf of Find-a-Part - Car Parts Search specialists since 1978.