Another motor vehicle component supplier in difficulty

[Nikked]

Originally Posted by mr smith

Falcon wont make '16. The viscious circle is speeding up, manufacturers and suppliers go under, more job losses, less confidence, less sales, more cuts, more go under.
Koshie showed a graph this morning that showed mining and finance are now our two biggest economic drivers, we are in trouble as these are two industries that can and do go pop real fast.

Orly?

I guess the 2014 falcon update is all fairy dust then...

Some people...

[Chippa666]

When Ford continues to loose suppliers and has trouble finding new ones what do you think will happen? "Yeah we'll build the 2014 update and just not fit the parts we can't get!!?"
We all thought with AMI going it would be a struggle, but with others now shutting down it makes it a hell of alot harder for ford. Yeah they will probably still bring the update out but I think the numbers will be low and so will the quality, so long as they can get the required parts for it in the first place.
I'll stick with my BF. The new facelift models will be junk.

[flooded one]

Originally Posted by mac_man_luke

Why would they bother with a new falcon in '14 if it was not going to make at least 16' - you would think they would plan to run a model for at least 4+ years

the media just likes too have a go at australian manufacturing. when i heard this story. i heard it was only going too affect holden. then it was ford then it was all three manufactures and now its holden and ford!! I dont even think the media knows the full story. secondly has anyone from ford said the falcons not going too make 2016??? I think people are jumping the gun abit because of the hysteria journalist go on about. unless a statement is issued about the falcon not being made anymore by ford. I would assume up to 2016 at this stage( maybe further)

[csv8]

CAR maker Ford expects to be back in production on Wednesday with issues surrounding a key component supplier set to be resolved.

Autodom Limited, which operates manufacturing facilities in Adelaide and Melbourne, was placed in voluntary administration at the weekend after closing its doors and standing down about 400 workers last week.

The company supplies parts to all three Australian car producers - Ford, Holden and Toyota.

Talks involving the administrators, the company, car producers and banks have centred on kick-starting production as soon as possible to prevent Ford and Holden having to stand down their own workers.

Ford said it now believed a resolution would be finalised on Monday and there would be no disruption to its production schedule.

The company had already scheduled a down day on Monday and would again be closed on Tuesday for the Melbourne Cup.



Holden was thought to be facing a similar situation, with assembly operations likely to resume on Tuesday, while Toyota was less affected after previously indicating it had enough parts to last until Christmas.

Earlier on Monday, Australian Manufacturing Workers Union (AMWU) Victorian secretary Leigh Diehm said the next 24 hours would be crucial in minimising the impact of Autodom's problems on Australia's car industry.

"The best-case scenario is obviously all our members back at work and the company is able to trade out of this current administration," Mr Diehm said.

"The next 24 hours is crucial and that'll be dependent on the car companies and also the banks, which have been in discussions all across the course of the weekend, and obviously the administrators, being able to find some cash to pay suppliers and get product rolling off the lines again."
http://www.couriermail.com.au/news/b...-1226510618723

[Road_Warrior]

Unfortunately for local automotive parts makers, 'One Ford' means more than just production of global car platforms.

[Bossxr8]

Originally Posted by Chippa666

When Ford continues to loose suppliers and has trouble finding new ones what do you think will happen? "Yeah we'll build the 2014 update and just not fit the parts we can't get!!?"
We all thought with AMI going it would be a struggle, but with others now shutting down it makes it a hell of alot harder for ford. Yeah they will probably still bring the update out but I think the numbers will be low and so will the quality, so long as they can get the required parts for it in the first place.
I'll stick with my BF. The new facelift models will be junk.

Ford has no trouble finding new suppliers at all, problem is they are in China. As much as it sucks they are getting more and more parts from OS its just a reality for them now as not many of the local suppliers can afford to make parts for Ford at such low volumes. But there are literally hundreds of suppliers in China that have no problem doing low volume stuff, because they don't just rely on Ford, Holden or Toyota, they make parts for everyone in really high volumes so have no problem with low volume stuff. They have recently just swapped a whole bunch of suppliers.

Its bad that they can't get Australian suppliers to do it but when you are gearing down to make just 140 odd cars a day who can afford to make small parts for them at such low volumes. Australian suppliers rely on volume to make money.

[mr smith]

Originally Posted by mac_man_luke

Why would they bother with a new falcon in '14 if it was not going to make at least 16' - you would think they would plan to run a model for at least 4+ years

It aint a new Falcon, its an evolution of the FG. I would love the Falcon to continue and unlike many fanboys on here I buy them.
But the figures are not stacking up, the Aussie buyer is after cheap and cheerfull or a badge statement.

[jpd80]

How many times does Ford have to say it, Falcon is here until at least 2016, a decision on Euro 5
can be left until after the 2014 update is delivered, that post 2016 car could possibly go through to
the end of 2018 and the Euro 6 dead line. That is potentially six more years through careful evolution
of a great design. People keep talking all new design but I doubt that's essential to Ford's plans.

[Flat Top]

Cost downs are a thing of the past ?? if youre silly enough to agree to them on declining volumes then?????? Anyway Holden have guattantted a % of the debt the company is back into production Wed? - i have no doubt recourcing alternates are underway but it wll be 3 months away?

[Flat Top]

Cost downs are a thing of the past ?? if youre silly enough to agree to them on declining volumes then??????
Anyway Holden have guaranteed a % of the debt ,the company is back into production Wed? - i have no doubt rescourcing alternates are underway but it will be 3 months away? Sub=suppliers with uneconomic volumes are gonna crop up again all the times. There is government money available to Consolidate suppliers.

[Nikked]

Originally Posted by mr smith

It aint a new Falcon, its an evolution of the FG. I would love the Falcon to continue and unlike many fanboys on here I buy them.
But the figures are not stacking up, the Aussie buyer is after cheap and cheerfull or a badge statement.

2014 falcon is happening, and it will feature a new front and rear, plus interior upgrades. It is the BA to the AU, EF to the ED. Ford would not commit to this if the figures didn't stack up. Selling between 1300-1500 falcons a month is obviously enough. And they would not go to this trouble just for a 2 year run...4 is a reasonable number.


If Ford were going to stop producing cars in Australia, they would have done it (or given a clear date)...and they haven't. Just look globally, ford have shut down the operations that are not performing, or have given dates to due so...


Guess what...

Ford have never given an exact date, a date to kill off the falcon, or a date to suggest a replacement.


The only thing Ford have alluded to is engine upgrade, for the I6 till 2016, nothing else.


The rest has been made up from Journos, and AFF members.

[Road_Warrior]

So how come this hasnt been posted?? Probably because it's too positive

http://www.goauto.com.au/mellor/mell...257AAE0006892C

Holden and Ford unite to back Autodom

GM HOLDEN and Ford have put rivalry aside to take joint responsibility for the debts of stricken parts supplier Autodom in order to avoid substantial disruptions at their respective assembly lines in South Australia and Victoria.

The two car-makers will act as guarantors on the parts-maker’s debt of about $6.5 million and underwrite the company for an indefinite period as newly appointed receivers from McGrathNicol seek to restructure and organise the sale of the business.

GoAuto understands the company – which took over a number of smaller Australian parts-makers over the past six years – is likely to be broken up into separate operations.

Autodom stood down 400 workers and halted production at its aiAutomotive plant near Adelaide and Dair Industries operations near Melbourne last Thursday, citing the high fixed costs and volume reductions in the local manufacturing sector.

It was subsequently placed into voluntary administration on Saturday.

Holden director of external communications Craig Cheetham told GoAuto today that the company will primarily underwrite the aiAutomotive plant in Woodville from which it sources components such as bulkhead crossbeams and rear sub-assemblies.

Ford Australia is expected to take a similar role with Autodom’s Victorian operations that produce parts such as such as rear bumper assemblies, foot brakes, clutch mechanisms, hood hinges, parking brakes and car jacks.

Autodom this week secured funding from the National Australia Bank, and the Australian Workers Union told ABC News that workers at both the aiAutomotive plant in Woodville and Dair plants in Dandenong South and Gisborne will return to work first thing Wednesday morning.

Production resumed today at Holden’s Elizabeth plant near Adelaide – which builds the Commodore and assembles the Cruze – while workers at Ford’s assembly line in the outer-Melbourne suburb of Broadmeadows have been told to report for duty from Wednesday.

Both companies faced production delays if an immediate resolution could not be found, since many components are delivered on a ‘just-in-time’ basis.

Mr Cheetham said Holden decided to back the Woodville operations through the restructure because keeping the plant in business was crucial to maintaining production at Elizabeth.

“We don’t necessarily want to have long-term responsibility for aiAutomotive,” he said. “But to ensure supply of parts continues, that the supply chain is in reasonably good health and that we are able to keep the employees in work, we’ve taken the necessary steps to ensure continuity”.

He also said the collaboration between historic rivals GM Holden and Ford Australia was a sign that the two companies were able to put the greater good – the continued supply of parts for both – ahead of anything else.

“What it shows in that context is that, when the chips are down and we have to do something for the greater good of the industry, obviously it’s of mutual benefit to do so, and our purchasing, legal and finance teams all worked hand-in-glove to bring us to the conclusion that it’s reached.”

Toyota Australia, which also uses Autodom components in the manufacture of the Camry and Aurion at its Altona plant near Melbourne, was at less risk of production delays as it had a greater stockpile of parts.

[Nikked]

I just hope its not a band-aid...Ford have already given them a help in the past. I'd be expecting some management change.


But, its a good news peice, and shows how vital Ford and Holden's local operations are to Australia.

[Buntz]

I think that Ford and Holden would like a say in who it gets sold to, and what any new owners plans are going forward.

[Jason[98.EL]]

Originally Posted by Nikked

I just hope its not a band-aid...Ford have already given them a help in the past. I'd be expecting some management change.


But, its a good news peice, and shows how vital Ford and Holden's local operations are to Australia.

I read an article this arvo on face book from bay fm ( geelong radio station ) that the management have been sacked and the administrators have taken over running the buisness ( cant find the article now )

will have a better look and post if i find it

Jason

[Jesmol]

Wow, so much BS from all parties has been said. I'm not sure what I can say and not get in any trouble, but certainly the Red and Blue team both wanted the company to go into admin. They now have a much bigger say in the re-structure now than they would have if they had bailed out prior to to the admin.

[svo supporter]

I very much doubt any car manufacturer would give a date when operations are closing....

Good on both Ford and Holden for stepping upto the plate and taking control of this company.....it dosn't surprise me a whole heap of management have been booted as a result....they're partly to blame for the predicament it was in to begin with......Hopefully both Ford and Holden remain in control of the company....it'll only help both companies bottom line.

[Bossxr8]

Its cheaper for the manufacturers to bail them out than stop the production lines.

[Jesmol]

Originally Posted by svo supporter

I very much doubt any car manufacturer would give a date when operations are closing....

Good on both Ford and Holden for stepping upto the plate and taking control of this company.....it dosn't surprise me a whole heap of management have been booted as a result....they're partly to blame for the predicament it was in to begin with......Hopefully both Ford and Holden remain in control of the company....it'll only help both companies bottom line.

See this is some of the BS I'm talking , right now the only "management" that has been removed is the Board who had no say in day to day operations.

[Jesmol]

Originally Posted by Bossxr8

Its cheaper for the manufacturers to bail them out than stop the production lines.

Its also cheaper for the Manufacturers to bail them out, than the Bank to take control of the receivers who would then re-price everything.

[Resurrection]

It is likely Ford and Holden will keep Autodom afloat just long enough for them to locate new suppliers. Once they have new supplier released the plug will be pulled on Autodom.

[Jesmol]

Originally Posted by Resurrection

It is likely Ford and Holden will keep Autodom afloat just long enough for them to locate new suppliers. Once they have new supplier released the plug will be pulled on Autodom.

For some of the parts there are no alternatives other than using Toyota's facility. This is much more than just a problem for OE supply. The Woodville site makes almost all of Holden pre-VE and Toyota's pre-056 spare panels as well. Not alot of places have the capacity and capability to make them.

[svo supporter]

Originally Posted by Jesmol

See this is some of the BS I'm talking , right now the only "management" that has been removed is the Board who had no say in day to day operations.

The board would have been responsible in making sure things were running at a profitable level.....(IMA, the board is part of the management side of any large business.) It goes the board (the head of the company), then managers (who take orders from board members and in most cases some managers are members of the board) then foremen then workers.


So where's the B/S side of it? The board not being management?

[Jesmol]

Originally Posted by svo supporter

The board would have been responsible in making sure things were running at a profitable level.....(IMA, the board is part of the management side of any large business.) It goes the board (the head of the company), then managers (who take orders from board members and in most cases some managers are members of the board) then foremen then workers.


So where's the B/S side of it? The board not being management?

3 Board members, all of whom were non-executive hardly count as a "whole heap of management"

[svo supporter]

Originally Posted by Jesmol

3 Board members, all of whom were non-executive hardly count as a "whole heap of management"

So because I didn't put a specific number on the number of management personnel that got booted, there was B/S being spread on my behalf over the company collapse...

Shame on me...

I don't know the specifics of the collapse, but hearing 2 of the 3 car manufacturers stepping upto the plate and buying this company, says that people in management would get the boot. (Board members being part of the management team)...Stands to reason. It's their responsibility to ensure the company is being run successfully, which it obviously wasn't for what ever reason

Now I'm going to pour another drink, therefore keeping more aussies in a job

[Jesmol]

Originally Posted by svo supporter

So because I didn't put a specific number on the number of management personnel that got booted, there was B/S being spread on my behalf over the company collapse...

Shame on me...

I don't know the specifics of the collapse, but hearing 2 of the 3 car manufacturers stepping upto the plate and buying this company, says that people in management would get the boot. (Board members being part of the management team)...Stands to reason. It's their responsibility to ensure the company is being run successfully, which it obviously wasn't for what ever reason

Now I'm going to pour another drink, therefore keeping more aussies in a job

Sorry if you thought I was referring to you as the spreader of BS , but I meant more in general , the media, the govt , the car companies and the supplier itself have all made statements which are factually deficient.

Most people however would assume when its stated that the Mgt team has been removed, would automatically assume it means the operation mgt team.

[BHDOGS]

Rumour has it there closing the Melbourne plants shipping the work to s.a then once vf is out which apparently only uses 3 parts from them they will be shutting up shop for good

[Jesmol]

Originally Posted by BHDOGS

Rumour has it there closing the Melbourne plants shipping the work to s.a then once vf is out which apparently only uses 3 parts from them they will be shutting up shop for good

LOL, nice rumor.

Just for clarity sake the Melbourne plants are mostly pressed metal and can be done by any of the other press shops around.

The Woodville plant has the largest ecoat facility outside the 3 makers themselves and is Holdens only option for coating of the rear suspension unit. They dont have inhouse facilities to do this. Other than that they can ship it to Melbourne, say around $2m / year in freight, not going to happen. For Holden to put their own plant in, budget around $5m.

The Woodville plant also does almost 100% of Holden and Toyota spares panels for non-current models.

Its not going anywhere in a hurry.