Administrator appointed for Autodom

Collapsed car parts maker Autodom will now be overseen by an administrator. Picture: Ian Currie Source: Herald Sun

HOLDEN and Ford are assessing when their car factories will resume production after an administrator was appointed to oversee collapsed parts maker Autodom late this afternoon.

Both car makers will decide by the end of Monday whether or not they will need to bring forward any more rostered days off.

Holden was due to resume production at its Elizabeth factory near Adelaide on Tuesday and Ford resume production at Broadmeadows near Melbourne on Wednesday following "down" days that were in place before the Autodom closure last Thursday.

But it now seems likely both Holden and Ford car making factories will be delayed at least one more day each.

Holden spokesman Craig Cheetham told News Limited: "We have been working over the weekend to assess the impact of Autodom's collapse. We are doing our best to minimise the impact on our production. We will know more by the close of business Monday."

Adding to negotiating difficulties, it is a public holiday in Melbourne on Tuesday for the Melbourne Cup horse carnival.

Toyota says it has enough parts to carry its Altona car making operations through to Christmas, but it will be affected by the 260 body panels Autodom made for its spare parts division.

Representatives from Autodom issued a statement confirming Macks Advisory had been appointed voluntary administrators over the company which makes critical body parts for Australia's three car manufacturers.

The statement said in part: "The administrators have taken control of the [Autodom] companies and all of their operations with immediate effect.

"The administrators [are] now working through the financial positions of the seven companies and commencing talks with key players in the automotive industry, the group's secured creditors, unions representatives and government to assess immediately available options.

"The administrators have lodged the requisite notices to the Australian Securities and Investments Commission and the Australian Stock Exchange.

"As Voluntary Administrators, we have taken control of the assets of the companies and begun the task of assessing the positions of each company."

Meanwhile the car workers' union says the newly appointed administrator should try to keep the business going.

It said it had been forced to close after the breakdown of negotiations with key stakeholders to ensure the company's operations were sustainable.

The Australian Manufacturing Workers Union (AMWU) says it is essential Autodom keeps operating because it supplies parts to Ford, Holden and Toyota on a just-in-time basis, in an industry that employs 200,000 people.

AMWU assistant Victorian state secretary Leigh Diehm says the union is working to make sure everything that can be done to keep work in Autodom, is.

"The decision to go into administration means we have to look at a range of options to keep things going," Mr Diehm said.

He'll be talking to Work Place Relations Minister Bill Shorten about the support role the federal government can play as well as the Baillieu government in Victoria.

"We now all have a responsibility to explore the possibilities made available by the state of the company's management, including what financial arrangements there are to get back to work and make sure workers aren't simply blamed," he said.

The risk now is that Holden and Ford will run out of parts by the middle of this week, with Toyota saying it could last until Christmas.

Earlier this year, Holden received a $275 million federal and state government assistance package to develop two new cars in Australia to ensure the future of its local manufacturing operations to at least 2022.

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