The top executive at Oxford logistics giant Unipart has launched an extraordinary broadside against the performance of the former management team of the company's key automotive division.

In a letter to shareholders, chief executive John Neill said: "Unipart Automotive is experiencing extremely tough trading conditions across the UK network with ill-judged cost cutting measures and poorly planned reorganisation started in 2005 having damaged business."

He added: "Although its international operations are performing well, it is likely that the adverse Unipart Automotive performance will significantly deteriorate the overall Group result."

As a result, there has been a major shake-up of the management team following the resignation of Chris Hetherington, former managing director of the division which employs 3,500 people, in May.

Unipart spokesman Mark Howard told The Oxford Mail: "We put up our hands to management mistakes in the past. The management team got it wrong.

"Now there has been a total reorganisation of the management structure at Unipart Automotive and we are confident the turnaround will be achieved."

Dennis Henderson is the new managing director. He has moved from Virgin Retail with Nick Rayner as deputy managing director.

Mr Howard added: "Conditions are tough in the autoparts business as cars break down less and insurance companies are forcing down costs at their body shops. It is a shrinking market in which we must slice out a larger share.

"We were slow to react to changing conditions and also the division was adversely affected by legal actions in 2004 and 2005."

The main action stemmed from Unipart's battle with the management at PartCo which it took over in 2003.

Mr Howard admitted Unipart parts were not the cheapest available to consumers, but they competed on their intrinsic high quality.

Some Unipart components are made by suppliers in China but all conditions in which operatives work at those Chinese factories reach international standards, independently monitored - unlike the conditions in which some competitors' products are produced.

Mr Neill told shareholders that the share price will remain at last year's price of 42p but that no dividend will be paid out.

For the year ending 2005 the group, which employs 10,000 people worldwide (1,300 at its Cowley headquarters), saw pre-tax profits including exceptional items leapt 13 per cent to £50.2m.