Australia’s beleaguered automotive sector has been dealt another blow, with receivers appointed to Tasmanian car parts manufacturer Automotive Components Limited (ACL).
Greg Keith and Matt Byrnes of Grant Thornton Melbourne were appointed this morning by car maker Ford after the company’s directors decided to appoint voluntary administrators to the group, which manufactures bearings and gaskets.
The collapse is likely to affect around 300 workers across the company’s sites in Launceston and Queensland.
The receivers said in a statement that it will be business as usual at the plant for now.
“The receivers intend to continue to trade ACL and ensure continuity of supply to the automotive industry while they consider all available options for the business.”
Byrnes told SmartCompany that he has already spoken with staff, union representatives and the Federal and Tasmanian governments.
“The message that we’ve sent to those groups is that we’re not taking a short-term approach here. We’re not here for a few weeks for an orderly shut-down.”
The entire industry will be watching nervously for fallout from ACL’s collapse, as the company is a key supplier to car makers Toyota and Ford.
In late June, Industry Minister Kim Carr announced the Government would spend $5 million to bail out the Tasmanian manufacturer.
At the time, Carr said the decision was made because of the exceptional circumstances surrounding ACL’s place in the automotive supply chain.
“This is a decision in the national interest. If ACL had collapsed, Ford and Toyota would have been in very difficult circumstances. Thousands of workers would have been stood down and production lines would have halted,” Carr said.
Toyota and Ford also pledged assistance for ACL and the company’s workers agreed to save costs by moving to a four-day-a-week roster. But the Tasmanian Government did not provide funding for ACL after the company’s directors refused to give personal guarantees for any loans.
This morning Carr has defended his decision to put money into ACL and has emphasised that the company continues to trade.
“The Government acted to stabilise not just ACL, but the Australian automotive industry as a whole at a very uncertain time – a time when the world was in recession, America’s General Motors was in bankruptcy protection, and the entire global car industry was in turmoil.
“Doing nothing was not an option given the strategic importance of ACL to the broader industry.”
ACL’s website says that as of May the company’s directors were Ivan James, Mike Saward and John Capuano.
The company was formed in 1986 through a management buyout of companies from Repco.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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