The demise of a large Australian auto parts supplier threatens to bring Australian units of Ford and GM to their knees as early as next week. Management is working feverishly on keeping the doors open, while complaining about “lack of support from key players in the industry,” Reuters says.
Autodom, a top Australian parts supplier, has been hit hard by high local production and labor costs. Manufacturing lines cannot be quickly scaled back, CEO Calvin Stead said. Autodom is Australia’s largest press metal manufacturer, and a key component supplier to Ford and GM Holden.
Despite hefty government subsidies and tariff support, the Australian auto industry is reeling. The high Australian dollar makes imports attractive and exports uncompetitive.
- Ford buys hundreds of components from Autodom for its Australia-built Falcon sedan and Territory SUV. Ford only has stock until the middle of the coming week.
- GM Holden said a closure of Autodom could halt production of the Commodore sedan and Cruze compact by next week.