news

Parts supplier closure could stop Ford Australia production

Ford Australia could be forced to turn away up to 1800 workers from its Geelong and Broadmeadows plants from Thursday as a major Victorian parts supplier remains on the brink of administration this morning.


Around 100 workers at CMI Industrial in Campbellfield were locked out of their plant yesterday by the landlord who is seeking more than $100,000 in unpaid rent.

The parts maker, which could go into administration before the end of the day, supplies suspension components to Ford for its Falcon sedan and ute and Territory SUV vehicles.

Ford Australia’s ‘just in time’ supply policy means the car maker only has enough suspension parts to continue production until Thursday. If no deal is struck before then, Ford will be forced to stop production and stand down manufacturing workers indefinitely.

The car maker expects there should be an outcome on whether vehicle production will stop some time today.

Ford Australia has been providing some financial assistance to CMI, and a company insider said a move into administration would be the best outcome for all parties to help resolve the issue.

Meanwhile, Coburg-based parts supplier APV Automotive Components was yesterday rescued from receivership after a deal was struck between the company and Australia’s three vehicle manufacturers: Ford, Holden and Toyota.

The maker of fuel fillers, rear suspension struts, and steel and fabricated components stood down 126 workers two weeks ago after announcing it was unable to pay its employees.

The plant reopened yesterday following a restructuring that included 34 voluntary redundancies and guarantees with the local car makers on price rises and future parts orders.

MORE:Ford Showroom
MORE:Ford News
MORE:Ford Reviews
MORE:Search Used Ford Cars for Sale
MORE:Ford Showroom
MORE:Ford News
MORE:Ford Reviews
MORE:Search Used Ford Cars for Sale
Chat with us!







Chat with Agent