none

"AUSTRALIA'S LAST" CAR MANUFACTURER ENTERS ADMINISTRATION

15-02-2018
by 
in 

Tomcar Australia, subject of a round of 2017 articles that labeled it as "Australia's last automotive manufacturer", has gone into voluntary administration. 

Citing hostile investors and increasing costs of business, admistrators confirmed the turnover for Tomcar in the 2016-17 financial year was $4.65 million, despite previous reports that the company’s turnover was “just under $10 million”.

The Melbourne-based business was founded in 2005, had five employees, and spent seven years in development before releasing its first product in 2012. The company made 100 of its premium off road, all-terrain cars in its first run, which sold out almost immediately after first launch.

The business has now stopped trading and the first meeting of creditors is scheduled to be held on 15th February.

The administrators said that high manufacturing costs, low sales volumes, and a “situation with an investor that led to legal proceedings, resulting in legal costs”, have contributed to the voluntary administration.

Company director David Brim said that the decision was “a devastating turn of events” for Tomcar Australia, and thanked the community for their ongoing support. 

“We have had to close our doors because of a group of hostile investors tried to take over the company from us, while ever increasing manufacturing costs have put untold strain on the cash flow of the business,” he said.

“We recently had an overseas investor about to come on board but at the last minute they backed out, leaving us with escalating legal fees and product costs, which simply pushed us over the edge."

“We want to thank everyone who supported our dream over the years and helped us along the way. It has been an incredible journey. We’ve tried our very best, but we couldn’t quite get there.”

 

Related news & editorials

  1. 20.05.2019
    20.05.2019
    by      In
    Industrial gas and engineering giant BOC used National Manufacturing Week to unveil its new Beacon IIoT technology, an Australian innovation set to transform the way its customers check, track, monitor and order gas worldwide.
    The new telemetry system connects the company’s bulk tanks and cylinders... Read More
  2. 17.05.2019
    17.05.2019
    by      In
    A new energy management system developed by the University of South Australia will be road tested during the 2019 Bridgestone World Solar Challenge through central Australia in October.
    UniSA PhD student Erika Belchamber has developed a technique that maximises efficiency in balancing solar input,... Read More
  3. 16.05.2019
    16.05.2019
    by      In
    The last few years have been tough for the oil and gas industry, resulting in some hard decisions around cutting costs and postponing projects. Thankfully, sentiment in the industry has recently been turning into one of cautious optimism. The time is now right to look at new technological... Read More
  4. 16.05.2019
    16.05.2019
    by      In
    Operating in 27 countries, Netherlands-based Boon Edam supplies security doors, gates and turnstiles to some of the world’s biggest companies and public agencies. Since establishing a permanent Australian subsidiary, Boon Edam has steadily provided its Australian, New Zealand and Papua New Guinean... Read More