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Victorian auto-parts supplier APV Automotive Components has gone into receivership, standing down 126 workers without pay in another black day for the local car industry.

The Coburg-based APV (Australian Performance Vehicles) who make OEM (original equipment manufacturer) components for Holden, Toyota and Ford, including fuel fillers, rear suspension struts, and steel and fabricated components, announced it was unable to pay its workers as a result of a significant decrease in orders.

While APV’s accessories plant in Queensland appears unaffected, its Melbourne workers will have to deal with the news when they return from an Easter-week holiday.

The company says a failed voluntary redundancy program and new enterprise agreement may have eased operating costs and aided financial pressures.

Stephen Longley and Nicholas Martin of PPB Advisory have been appointed as receivers of APV Automotive Components and say urgent discussions with suppliers, car companies, the Australian Metal Workers’ Union (AMWU) and employees are planned with the aim to resume operations as quickly as possible.

“In the meantime, it has been necessary for the receivers to stand down without pay the company’s employees as there are not sufficient funds for us to meet payroll or other operating costs,” Mr Longley told Melbourne’s Herald Sun today.

Only in May last year, APV stepped in to save the Autoliv crash test facility in Campbellfield, in Melbourne’s northern suburbs, with a $10 million investment.

The Autoliv facility falls under the companies safety division – run as a separate operation – and is believed to be financially secure avoiding the fiscal problems of the automotive components division.

AMWU vehicle division secretary Ian Jones told the Herald Sun that APV Automotive Components has “been precarious for some time”.


  • Ter

    :(

  • F1MotoGP

    Globalization……not working here. We can not compete against wages in  India and China!

  • Digi_1

    Agree with F1 and these 80k a year jobs will be replaced with 55k a year warehousing jobs as we become a dumping ground for cheap imported goods.

    • MisterZed

      Sorry but 80k is way too much for a blue collar worker.

      • Daniel D

        I’m not a blue collar worker, but I have nothing against any blue collar worker who does earn 80K/ Many white collar workers get paid more and produce far less of any substance to society,

        • Digi_1

          Yep, fair call!

      • Digi_1

        Hence why the jobs are going overseas. 80k a year is bugger all if you want to pay off a mortgage.

        • MisterZed

          A mortgage on a house, maybe.  Not a flat.  Nobody has to live in an expensive stand-alone or semi-detached house.  In Europe and Asia most people live in flats.

          • Digi_1

            Yeah I agree, hopefully we’ll see some more family friendly apartment/flat developments in melbourne over the next few years.

          • Daniel D

            Or a sustainable population that doesn’t require more housing.

          • Daniel D

            We live in Australia, which at least was a first world nation. One of the benefits of that status is the right to own an affordable house. If you don’t like or what a house for yourself then fine, but saying someone else in the world is worse off and therefore we must lower our standard of living to match them, is not a smart idea. 

            Lets aim for the highest not the lowest.

          • topaz

            I can’t even.

          • Robert Ryan

             We all can starve like they do in parts of China/India, so we can feel less guilty about being better off. Very strange thinking.

          • coles

            How bourgeois.

          • Anthony

            I wish it was a right – but that’s a teaser for the rich to say to us yeah you can try – just try it mate – while they steal your life. and pay you nothing

          • Robert Ryan

             or Hovels /Mud Brick Houses too. I do not like this “race to the bottom” mentality. Globalization is a disaster.

        • Andrew M

          the catch is though that higher wages and easy credit is what spiked the prices to what they are today.

          Everyone wants more and more money but dont realise that more money to spend in your pocket makes things more affordable and then demand for them grows which in turn pushes up the prices again

          wage increases and cost of living increases just feed each other

        • Anthony

          try less than 30 – no mortgage here & second hand 10 year old cars – I had to leave school & start work at 16 – now I need a formal education to fart in peace – way way too late for my parents to wake up & me to go to school

  • Andrew

    I have helped manufacturing in Aus by purchasing a new FPV GT last year and new SSV ute this year, very happy with both purchases!

    To all the Australians that bag out and avoid purchasing Aussie cars, this is just the beginning of the knock on affect, well done!

    • Barry

      Well done Andrew,hope both of your new Aussie muscle cars do well for you.Wish you could be cloned 100,000 times over.
      Also agree with F1MotoGP,free trade agreements and Globalization are destroying this country.

    • Shak

      Beautiful job mate. Im committed to following in your footsteps once the lease on my Cruze runs out, going from a Korean one to an Aussie built one. If all Aussies realised that people around the world will always try and support their own country first then we would be in a much better position.

      • Robin_Graves

        Problem is – the so called “Australian built” cruze is actually an Australian assembled cruze with very little local content by $ value.  All the big ticket items are not Australian, so all the govt support is sailing straight back to Korea and the US.  Personally I think the cruze has a lot to blame in this story as money otherwise spent by bogans on a Crummydore is going on a cruze.

    • Guest

       What a dumb statement, you might be happy with your sub standard Australian cars but why should all of us have to be forced to buy one. The last time I looked both companies were American anyway.

      • Andrew

        Haha, what a dumb response.

        Firstly no one is forcing you to buy or do anything, I don’t even know why you would make such a comment.  Australia produces a large range of vehicles that meets most peoples needs.
        Secondly, both Ford Aus and GMH have parent companies in the USA (Most Australian companies have parent owners overseas, more than what you think), however both companies employ a large number of Australians directly and also support a large number feeder companies and contractors such as the one listed in this article.  These companies feed economies of local communities across Sth East Australia.  So at this point I think it’s irrelevant to note these companies as “American”…with no further substantiation.  Also it’s Australians losing jobs here, not Americans…

        Lastly, “sub standard” to what???

        I thoroughly enjoy driving both cars.  The GT is my 3rd Falcon and all of them have been great cars that all racked up close to 200,000 hard driven kms.  I traded my 2009 Hilux on the SSV and now regret buying the Hilux.  The SSV is far easier to drive, has more tech, better seats and has a great sounding motor.  The SSV also makes driving a ute fun, the Hilux made me feel like i’m driving just another commercial vehicle.

        • Guest

          Well Andrew they don’t make a car that I’m interested in! I don’t need a Taxi, I don’t have to ferry children or family around. I like sports cars and neither an FPV or an HSV will ever be that. I don’t keep my cars for 200,000km’s so I don’t really care about km’s.
          Also they are American companies whether you like it or not, yes they do employ Australians but the money contributed by the tax payers of Australia far out way the cost of propping up these American companies. I don’t doubt for 1 minute that we have the ability or the resources to build world class ,but the ones on offer are far from that!
          The fact that you mentioned that your SSV sounded better and drove better then a Hilux clearly shows that you really aren’t smart enough to understand much at all.

  • Andrew M

    And the receivers move in……
    The receivers have a board meeting and decide what the receivers as a company can make more money out of….
    either closing the place down or trying to run it.

    9 times out of 10 the receivers just liquidate it because they are worried about investing too much time into it and not getting paid themselves.

    Ive been a creditor to a company that went bad a couple of years back and another again earlier this year.
    The receivers pretty much laugh in the face of all the people who are owed money by declaring their princely sum to all involved, and their fee comes out first to leave zero dollars left in the balance sheet.

    The fee for receiving a company like this would probably be about 200K

    The only hope is for an injection of Gov money to keep the receivers honest.

  • Andrew M

    Quote……….
    “The company says a failed voluntary redundancy program and new enterprise agreement may have eased operating costs and aided financial pressures.”

    Does anyone else read this as ………..
    “the union driven employees were too greedy to sacrifice a bit to secure their employment??”

    It sounds like the bosses of this auto parts company were on the ball with figures and where they were going but they were just powerless under union guidlines to let a few people go before it got too bad.
    Lets say your production halves and you dont halve your workforce the wages will catch you very quickly, and in an industry where labour cost is already a big issue……….

    • Joe Bloggs – Taxpayer

      Thanks to the Fair Work Act and the ‘apparent’ level playing field that really does not exist, another Australian business looks like biting the dust 

      • ?????????

        Yet the 7;30 report last night tried to sign the plaudits of ‘Fair Work Australia’ saying its better than the previous in controlling businesses not going broke and unions overrunning the companies… yeah right. Just as Toyota, BHP, APV and hundreds of smaller manufacturers.

        • Andrew M

          What makes me laugh about the whole so called fair work policies is thinking back to when the Howard government was talking up work choices.

          Little Kevie had everyone running scared about losing their jobs when in fact I think it was safer under the proposed changes.

          The thing is though the unions were the ones about to be kicked in the face by the policies making it easier for businesses to manage staff and keep themselves a float.
          The unions got Howard kicked out because he was trying to kick them out.

          And whats even funnier is that individual contracts already and still do exist, its only that work choices was about standardising them and educating the workers.

  • Adriansmall1

    sick and tired of the Federal Government bailing out the Motor Industry….General Motors announced last Month a $5.3 Billion profit, yet our Government gives them $250 million to keep GMH running. what a load of rubbish. people like APB could have don e with the help. Not some big International Company like General Motors….Toyota is just as bad,they make Billions yet the Australian Government gives them Millions to stay here. Why not let GMH fold, then allow the Federal Government to buy the Factory and use the same Australian workers to run it. To Me That is more Feesible in the long run. Australia has been bled dry for  50 odd years by these Multi  National companies, who blackmail Australia….For once let them call our bluff and go through with it.

    • Robert Ryan

       The meeting today, to decide how to make manufacturing in this country much more flexible and gain a bigger share of the Global supply chain.

  • Legnab

    No doubt their margins were squeezed down to bedrock by their 3 customers , and then volume fell as the dino cars sales dropped off , sad , but just a portent of the future , wrong sized cars .

    • ?????????

      wrong sized cars my but!!! Look at the cars that are selling. 3 is as large as a VB Commodore. 6, Mondeo, Accord, Liberty are all similar in size to Falcon and Commodore and definately the same size as Aurion/Camry. It’s not that the Australians are the wrong size its actually that the importers get a better deal form their respective governments and due to volume production and lower tax basses with higher government protection can then sell their cars here cheaper…..
      Actually take the time to look at what is really happening before continuing on this carp about the cars built here… Dino cars? Camry is the best seller in the states. and is Toyota Passenger cars shinning light, as opposed to Mazda 3 that can only find favouritism here in Australia as everywhere else it is considered an also ran, space filling alternative.

      • Sydlocal

        ??????????, don’t forget Canada for the Mazda3, the only other place outside Australia where it is a big seller. The Mazda3 is constantly fighting for number 1 over there as well.

        • MisterZed

          Mazda3 is not just popular in Canada, but Israel too.

  • Sumpguard

     So who still thinks we shouldn’t save Holden?

        If people can’t see now just how delicately poised our entire manufacturing sector is they are deluded! We were only discussing the volatility of our parts industry in another thread on this site last week. Sad indeed and it is all because of the strength of our mining sector.

         Meanwhile the CIA are trying to destroy Clive Palmer. Yeah right.

    • Shak

      The strength and blatant rape of our mining sector by massive companies who dont give a toss about our country. When we start seeing the proper benefits of the Mining boom that we should be then our manufacturing sector will come back to its glory.

      • ?????????

        minning sector isnt responsible for this, it is the free trade policy introduced several terms ago.
        Here’s a great idea, lets drop the local content rullings we had for car imports (at least 25% has to be done locally to achieve some tarrif exemptions), drop the tarrifs on imports from developing countries (even though those cars are made by the largest global manufacturers), reverse the protectionist rules that stated Govco had to buy local built unless no alternative was available and then open the flood gates to any want to be manufacturer to bring in their wares.
        That’s a grat policy for support of our industries isn’t it???
        No, okay then lets add a carbon tax, waste tax, payrole tax, and increase the minimum mandatory employer funded superanuation? That’ll help won’t it? No okay lets give the minimum wage another increase?
        why are our manufacturers being out priced by the protected indutries from Thailand, Europe, China & Japan???

        • !!!!!!!!!!!!!!

          Well who’s stopping us from exporting?

          • Lox

            Try Thailand who after the Free Trade agreement when we sent cars over there, suddenly changed the rules on vehicles with our capacity engines, effectively taxing them out of competition.
            There are multiple other countries with high tarriffs. I was just reading one on Russia who added a 35% tarriff just to help local production and encourage investment locally. Compare this to the 5 or 10 (whatever it is) in Australia. The Russian tarriff isn’t even one of the higher ones imposed internationally.

          • horux

            Honestly, if the industry’s livelihood is so drastically affected by a single market such as Thailand, then we should have just called in sick and shut the thing down. What are you trying to achieve with raising tariffs? Force people to buy cars that they wouldn’t choose in free market conditions? I don’t see that as being optimal. It’s inefficient and inflationary.

        • Legnab

          All dreams , strong dollar no way , by 2016 any big lardy crummer/falcoon cars  will be ex USA and loverly FWD .

          We pay ouselves too much to be competitive in car making .

          • Barry

            Bangel,Germany pay higher rates of pay to there workers than in Au.The protection for the German industry is far higher than here.

          • Legnab

            AND the german car industry is owned by germans , not foreign ,  americans and japanese .

          • Legnab

            Sorry forgot OPEL is owned by damn yanks , look at their pathetic financial state , VW GROUP , BMW , MERC , german owned .

        • Robert Ryan

           Insane to begin with and of course or “free trade” partners do not practice what they preach.

    • Dave S

      people keep forgeting a local sale is not just a sale to Toyota, Ford or Holden but to any 1 of a huge number of Australian manufacturers that produce for our automotive industry.

    • Robert Ryan

       A restriction on who gets a License to mine, would be a answer. It would ease a lot of pressure of the dollar. It looks like the commodities boom and investment is starting to slow down in Australia.

  • save it for the track

    As I said recently. It is too late for Manufacturing in Australia. The auto parts manufacturers should have been given support years ago and the industry (Autoparts and the car makers themselves) should have all been included in some sort of package way back when we had more than three vehicle manufactrures in the country. As usual Australian Governments try to be ‘leaders’ in feel good areas such as carbon taxes and lowering taiffs, while the rest of the world looks after their home markets first and pay lip service to ‘free trade’ later. Successive Australian Governments of all political stripes have failed to adequately manage and sustain a viable Auto industry in this country. Now they simply throw money at the ‘local’ big three and too bad for the parts suppliers. The ‘local’ big 3 will very quickly become assemblers, bolting together 100% imported parts.

    • Robert Ryan

       Too see what a failed Automotive Industry looks like go to Detroit. The City has lost a 1/3 of its population over the last 10yrs and a lot of the City  now looks like a war zone. Pretty horrifying

      • Rocket

        Suggest you go to South Carolina and see a booming BMW factory with no unions and happy employees.

        • Robert Ryan

           Unions are not the problems, BMW, Mercedes, Toyota have strong unions and a booming production. No car production , no unions or anything else for that matter.

          • ?????????

            Ahh Slight correction. The Southern States gave huge tax reliefs & monetary bonuses along with assurances that the AutoWorkers Union were kept out. If you had been watching during the GFC whilst GM & Chrysler were asking for assistance, the main detractors were the senators from the southern states. This was part of the reason that Allan Mullaly walked otu of the talks and decided to go it alone. These senators that hasd done the deals with the likes of Toyota, BMW & Hyundai were adamant that the Detroit three had to continue with their archaic, ludicrous remuneration packages and low volume outputs enforced by the Unions. Now that the unions have been sorted out and reformed, you are seeing detroit actually turn around and return profits. 

      • MisterZed

        Parts of Melbourne and Sydney look worse.

        • Robert Ryan

           Except we do not have armed guards that protect the congregations of churches. Detroit is on a whole new level of devastation

  • Robin_Graves

    The biggest problem in Australia is welfare parasites.  All these hard done by minorities and dead set lazy dole bludgers who continually have their hand out.  Crack down on crime and welfare parasites and make them go to work, no wonder wages and therefore costs are so high with so many ticks bleeding off the system.

  • James

    Well this is all thanks to capitalism running rampant. We need controls on our economy so we heavily subsidise the most critical parts of our economy- manufacturing and farming. The amount of subsiding and protection we do to our critical industries is laughable compared to alot of Asian countries (e.g. malaysia, indonesia) and even some european countries (France in particular). I think we’re selling out our future generations big time and soon we will end up like Britain- no industries except for finance. I think the time is fast coming to leave Australia because soon we will be importing ALL cars, furniture, electronics, renewable power equipment, food (dairy farmers are struggling like no tomorow- say hello to Chinese milk- yay cheap, tainted milk!!) and nearly everything else! The only industry Australia will be left with is mining and that’s destroying the environment at an extremely rapid rate (do you want coal seam gas mines surrounding your home? thought not!) and the price of commodities fluctuate alot. No jobs will be left except for a handful of mining jobs. Heck even retail jobs are leaving thanks to all the stupid hipsters that buy everything online. I for one will try to keep jobs alive even if single handed- flying on Qantas, buying from actual shops, and buying commodores and falcons. I miss the Australia I have known and it especially makes me sad to
    think that we will never ever get back the industries we have lost. RIP
    Australia :(

  • Anthony

    who has the filing cabinet or working phone number – im researching a car they did when they began – I need production number & engine capacity/build details
    mines 311 of ???????