none

Autodom future still uncertain

31-08-2010
by 
in 

 

Work has resumed at troubled auto parts maker Autodom's Victorian sites, but the company’s future is still under a cloud.

Auto giants Holden and Ford recently took on Autodom's estimated $6.5 million debt and agreed to underwrite the company, protecting jobs in Adelaide and Melbourne.

Australian Manufacturing Workers Union (AMWU) assistant Victorian state secretary Leigh Diehm said union members had met with the company's newly-appointed receivers to negotiate the return to work.

Mr Diehm said Autodom Ltd's 170 Victorian workers were now back at work indefinitely.

The resumption of work has also guaranteed a supply of components to Ford.

But it remains unclear whether the jobs of Autodom’s 400 employees across Victoria and South Australia will be secure in the long term.

Mr Diehm said the receivers would look to restructure the Autodom group and may split it up into individual companies with a view to selling them. The union has supported this move.

The resumption of work at Autodom's South Australian operations has averted a shutdown of local car-maker Holden.

Ford and Holden have guaranteed Autodom's debts after talks with the company, its administrators and banks.

Both the car producers had faced a shutdown due to parts shortages after Autodom closed its seven factories and stood down 400 workers last week.

Mr Diehm said the administrative process could take weeks or months.

Autodom has blamed a downturn in demand for new cars for its troubles.

Related news & editorials

  1. 03.06.2020
    03.06.2020
    by      In
    After the largest single-month drop in the index’s history in April, the Australian Industry Group Australian Performance of Manufacturing Index recovered by 5.8 points to 41.6 in May.
    COVID-19 restrictions continue to affect demand across the board, but that decline slowed across all activity... Read More
  2. 03.06.2020
    03.06.2020
    by      In
    The Australian Made Campaign Ltd (AMCL), responsible for administering and promoting the famous Australian Made logo, has unveiled the tag line of its new promotional campaign.
    ‘It’s never been more important to buy Australian than right now’ speaks to the place Australia has found itself in as it... Read More
  3. 03.06.2020
    03.06.2020
    by      In
    The Australian Research Council’s Linkage Projects scheme has awarded close to $1 million in funding to research projects led by the University of Wollongong.
    The ARC Linkage Projects scheme grants are designed to bring university researchers together with industry partners to undertake research... Read More
  4. 03.06.2020
    03.06.2020
    by      In
    Welders are among the most at-risk workers in the metal manufacturing industry. Welding fumes and their effects on health are some of the worst hazards to be encountered, and welders need to be especially aware and cautious about how to best reduce exposure.
    Health and safety holds the highest... Read More