Ford and GM co-signed a $6.5 million loan in an effort to pull a key Australian parts supplier from the brink, Reuters says.
Autodom closed plants in two Australian cities last week and was about to close its complete operations. The company is strategically important to GM’s and Ford’s Australian operations:
- 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.
Ford Australia and GM Holden agreed to share the debt liability equally. After receivers were appointed, the company can resume production this week.
GM Holden said last week it was cutting 170 jobs at its Adelaide assembly plant because of falling demand for locally-built vehicles.