A WARWICK-based car doors and windows manufacturer was in talks over the acquisition of a French rival with sales of more than 500 million euros.

Wagon said that buying car body parts manufacturer Oxford Automotive - whose customers include Peugeot, Renault and Daimler Chrysler - would put it in a stronger position to compete for larger contracts.

Shares in Wagon, which also makes impact protection systems and roof racks and has 18 factories including three in the UK, were suspended yesterday while advanced talks continued.

Wagon said that the combined group would have critical scale in supplying the European automotive component supply industry.

The move would also forge strong relationships with the major French and German manufacturers.