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. Hayley Glasgow
    12.04.2021
    12.04.2021
    by      In
    More than half (55%) of Australian manufacturers with off-shored operations intend to bring them back to our shores by 2023, according to a survey of 500 senior manufacturing employees in December last year.
    This is largely being driven by market volatility caused by the pandemic and strained... Read More
  2. AMW Melbourne 2022
    09.04.2021
    09.04.2021
    by      In
    Australian Manufacturing Week 2022 (AMW), the premier manufacturing solutions event, promises a strong line-up of content and will focus on leadership, future solutions and additive manufacturing.
    AMW is owned and operated by the Australian Manufacturing Technology Institute Limited (AMTIL). which... Read More
  3. Engineering graduates
    09.04.2021
    09.04.2021
    by      In
    Graduates of Australian universities are far more likely to satisfy their employers if they hold an engineering or related degree than is the case if they hold a creative arts degree.
    Satisfaction levels are ranked at 90.5% and 78.3% respectively, according to a survey last year by Quality... Read More
  4. Conymet Duratray
    08.04.2021
    08.04.2021
    by      In
    Cranbourne Victoria will become the centre for an internationally supported manufacturing facility that will create up to 100 new highly skilled jobs.
    Minister for Economic Development Tim Pallas welcomed the decision by Conymet Duratray International to grow its current Victorian footprint by... Read More
Products
Suppliers