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Ford Australia forced to stop Falcon, Territory production

FORD TERRITORY
By Tim Beissmann
FIND DEALS

Ford Australia has been forced to stand down approximately 1800 Broadmeadows and Geelong workers after key supplier CMI Industrial was placed into receivership this morning.

Keith Crawford and Matthew Caddy of McGrathNicol were appointed as receivers and managers of CMI Industrial today after it was placed into voluntary receivership by its director.

Workers at the Campbellfield-based company have been locked out of the plant all week by the landlord, who is owed more than $100,000 in unpaid rent.

Ford Australia, which sources suspension components for its Falcon and Territory from CMI, confirmed earlier this week it would be forced to turn away workers from Thursday afternoon when it was scheduled to run out of parts to build its cars.

McGrathNicol’s Crawford said he would be liaising closely with CMI employees, unions, customers and suppliers over the coming days with a view to ensuring “minimal disruption to operations”.

“Our objective is to work constructively with CMI Industrial’s key stakeholders over coming days to stabilise operations in order to facilitate a thorough assessment of each business units’ financial position and prospects and to prepare viable business units for sale,” Crawford said.

Speaking on behalf of the receivers, Nick Maher from communications partner Kreab Gavin Anderson confirmed the Campbellfield plant remained closed this afternoon.

While Maher said he could not comment further on when production at the plant may resume, he said there was not likely to be an announcement of any changes to its status before tomorrow.

Note: CarAdvice has contacted Ford Australia for comment. We will update the story when we hear more.


 

  • nickdl

    Surely the government can step in and at least grant them a loan at low to no interest. In the long term spending $100,000 will save a lot more of the economy. It’s not just Ford who is affected by this, but all of its other suppliers around the country.

    • Ford Fairlane

      Agree,Be nice if the Gov helped their own people for a change instead of trying to be the worlds “Good Bloke” by handing out our money.

      • GG

        Here is a little fact

        In Australia’s 2010 budget speech delivered by the Federal Treasurer, Wayne Swan, it was estimated that the aid granted to Indonesia amounts to AUD458.7 million. The assistance focuses on promoting sustainable growth and economic management, supporting climate change and health systems, improving access to water, clean sanitation and education, improving governance and democracy and lastly maintaining peace and safety 

  • Leighh

    ridiculous that this can happen at all these days. the government should be ashamed by this. you would think that this company should be able to keep going with a no interest loan so it so it doesnt affect so many people who dont even work for them. Come on Vic Government…… do the right thing!!!!!

  • Andrew M

    I think the receivers will be seriously pitching at Ford a buy out deal.

    If there is a Gov grant I think it will go Fords way on the stipulation of buying the plant.
    If Ford does put together a buy out offer, bet your bottom dollar it will have to include a reduction in staff.

  • The global realist

    People wont like this, but from a world wide economy prospective, id say its beneficial that CMI closed down.

    Australia  does not have a comparative advantage in car manufacturing and so it would be a better allocation of the worlds scarce recourse if we let Korea or Japan produce the parts. Greater efficiencies, less wastage and a higher quality product.

    We should stick to what we are good at ie digging up recourses from the ground =) 

  • atd

    Shouldn’t ford have a bit of a stockpile of parts? Its not like there not dealing with fresh food etc

    • http://twitter.com/jackkl Jack

      Nope. ‘Just in Time’ technology means the parts are only delivered as needed, at most 2-3 days before used on the production line. Otherwise, manufacturers would need to warehouse all their component parts, then relay them to the production line. Its more cost effective for both supplier and buyer that way.

  • bigbear88

    Well its not whether Ford bail them out or the Government gives them a loan with your TAX dollars, they just can not make the profit to cover the overheads ,,, and part of that is the rent on the property very simple economics, I guess they are not and  I SAY selling the parts at a high enough profit level ……….and maybe Ford has them on a tight contract, eventually when can not pay the rent , you know whats next its wages jobs ,  companies like Ford or G.M. always have second sourcing for components to cover JIT  just in time  deliveries in the event of supplier failure, theres more to this scenario I am sure …….this would not happen in KOREA THAILAND JAPAN now CHINA…………..????     

  • Legnab

    Spot on bigbear88 , their margins would be so tight , one hicup and your gone , falling demand would certainly have affected them , bit like the big grocers screw down the price dont supply anyone else , if he goes under there is always another mug to step in .

    • Andrew M

      The margins are tight all the way up and down the line.

      The likes of Ford, Holden and Toyota are also getting screwed down on their margins to also compete.

      The only ones not taking a hit seem to be the actual workers, that is until its too late.

      Employees in Aus whether it be Auto industry or even airline industry for eg get their constant 4 % wage increase each year pushed by the unions while the companies they work for are forced to cut their prices to remain competitive.

      The average employee things he/she is worth more and more each year in an idustry that is struggling to keep its doors open.

      The average employee doesnt have reality thumped into them until its too late and they suddenly have no job at all.
      I bet the employees would suddenly take a small pay cut now that struggling to find mortgage payments has become a reality.

      And then we must ask why everyone is struggling to compete…..
      Well we have opened our borders to and taken away the security of the common worker by forcing them to compete with the 3rd world wages of india and china for eg

  • Rick

    Maybe some of these overpaid bosses need to be pulled into line , why should taxpayers have to bailout badly run bussinesses with greedy bosses . Sick of my money being wasted on this crap . Start making companies accountable , maybe a wage ratio could be introduced ie. a CEO can only earn 100x what the lowest paid worker he has earns

  • Dennis

    Well it’s the Unions that put us in a mess, how about they actually start bailing out Companies for once?

  • ABCDEFG

    The union should pull a strike to stop this nonsense!!!!!!!!!!!!!!!!!

    • Dennis

       Who is going to Strike? CMI Industrial are finished, Ford cannot build cars because of that…

      What’s a strike going to do? LOL

    • Gaza

      you are so out of touch mate
      people like you ruin things with your mentality.
      your probably a throw a punch now think about the consequences later

    • Ramjet

      Too late the owners went on strike first because they are losing money.