Another motor vehicle component supplier in difficulty

[BroadyFord]

Hundreds stood down as plant shuts doors


http://www.theage.com.au/victoria/hu...101-28lez.html

About 400 auto workers may have lost their jobs at plants in Melbourne and Adelaide.

Autodom Limited — which supplies parts vital to Ford, Holden, Toyota and truck maker Kenworth — has announced it is closing both its factories "indefinitely" while it comes up with a restructuring plan.

It also issued a statement all but demanding the major car companies and state and federal government help it to rebuild — or face the huge costs of it going under.

The company's shares have been suspended on the Australian Securities Exchange after it failed over several months of negotiations to come to an agreement with the auto companies that buy its products.
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Autodom owns DAIR Industries, which makes makes rear bumper assemblies, foot brakes, clutch mechanisms, hood hinges and parking brakes, and employs about 150 people in Dandenong South and another 30 or so in New Gisborne.

A statement issued by Autodom said it had been "forced" to make the difficult decision because car makers had not given it the deal it needed to remain sustainable.

"The closure of the facilities, which collectively employ 400 people, is indefinite," the statement said.

Chief executive Calvin Stead said the business's failure could potentially result in significant direct costs to the car industry and taxpayers.

"We need time and assistance to reorganise ourselves and structurally change the direction in which we are headed," Mr Stead said.

Australia's car industry has slashed the number of cars it builds annually in recent years.

Mr Stead said that, because of this low volume of cars being built, his firm's business could not continue without mutual cooperation between the auto companies and the component sector.

Governments also had "an important role" to play, he said.

Leigh Diehm, the state secretary of the Australian Manufacturing Workers Union, said staff had arrived at the plant from 5.30am. At a 7am meeting they were being stood down.

The stand-down is, technically, until Friday — but the reality is it could be a permanent dismissal.

‘‘They are looking for some money from the federal government to assist in their so-called restructure, and some sort of concessions from the car companies,’’ he said.

Autodom's closure will affect Australia's three main car manufacturers — Holden, Ford and Toyota — but will have the most immediate impact on Ford in Melbourne.

‘‘If the company goes into administration it could be a situation where the car companies could find themselves without a supplier,’’ Mr Diehm said.

However, all three car companies had ‘‘quite a bit of stock in reserve’’, he said, meaning it would take time for the effects to flow through.

Mr Diehm called on the Baillieu government to step in, along with Canberra. "Ted Baillieu needs to be involved.

He's constantly out there with [Manufacturing minister] Richard Dalla Riva in the media saying he supports local manufacturing. Well, what support are they giving here?"

The state opposition’s spokesman on manufacturing, Adem Somyurek, said the Baillieu Government had previously been ‘‘dragged kicking and screaming’’ to support the Victorian automotive industry, and could no longer sit back and watch as people lost their jobs.

‘‘The Baillieu government must start supporting the automotive manufacturing sector in Victoria and the thousands of workers it employs,’’ he said.

Unions, car companies and the state and federal governments have been contacted for comment.