Another parts supplier goes bust

[phillyc]

Originally Posted by vztrt

ebxr8240 - can you show me Japans tariffs as I've shown on here before that Japan has no tariffs on their imports.

Just because there is no tariff doesn't mean there isn't significant barriers to exporting cars to Japan.

Doing business in Japan is incredibly tough. There are multiple layers of distributors and resellers for any type of goods, plus the cost of establishing shop fronts / dealers etc is massively expensive due to real estate alone.

Of course they are keen to import our commodities, they have none themselves and use ours to turn them into goods and what was bought by them for $100/ton comes back to us for $20,000/ton in the case of a car... Electronics, probably 10x that.

NB They also take stakes in our companies to help manipulate the prices we sell for too. Is it any wonder we have a Deficit, monthly to the tune of $5B, they have a surplus of $30B?

[WOTDAH]

Ford's body build has stopped production, Friday is a down day, monday public holiday if things don't get sorted out production will stop all together by about wednesday next week.

[last fairlane]

Its true coal and wheat go to Japan
but back in the 70s Japan imported an Australian car called the Mazda
"road pacer"
it was an HX Holden Premier with a rotary engine fitted under the bonnet
a 13b from memory

[Daymoe]

Originally Posted by WOTDAH

Ford's body build has stopped production, Friday is a down day, monday public holiday if things don't get sorted out production will stop all together by about wednesday next week.

Lets wait for the media to cause a poop cyclone on this one.

[AzuR]

man this sux my new ute is due to be getting built right now :(

[steamin63]

Originally Posted by XD 351 Ute

Agreed 100%...

It's ok, once all of us involved in manufacturing something in this country lose our jobs, then then we won't be able to afford to buy the cheap imported crap anyway......

I try to buy Australian whenever I can, the only times I can't is usually because what I want isn't made here any more.
There is the odd example where the Australian equivalent is rubbish, or way too overpriced, but it's not that often.

How do we fix it? I dunno, but I like to think I try to help the bloke down the road keep his job by buying Australian made when I can.

Ed

my thoughts exactly. i support australian made, australian owned every chance i get. as for the people who don't care about their fellow australian workers for the sake of a few dollars i hope your job or trade gets outsourced to china or india then we will see how loud you scream.

[Paxton]

Originally Posted by WOTDAH

Ford's body build has stopped production, Friday is a down day, monday public holiday if things don't get sorted out production will stop all together by about wednesday next week.

Crap, that's not good.

Just what Ford doesn't need.

Lucky they have four down days to sort something out. Ford stepped in to help DSI (and that was only for the 4 speed gearboxes), so here is hoping a deal can be reached by Tuesday next week.

[vztrt]

Originally Posted by Paxton

Lucky they have four down days to sort something out. Ford stepped in to help DSI (and that was only for the 4 speed gearboxes), so here is hoping a deal can be reached by Tuesday next week.

Ford has stepped in many times to help suppliers. If this will stop production then I wouldn't be surprised.

[Raptor]

Originally Posted by vztrt

Ford has stepped in many times to help suppliers. If this will stop production then I wouldn't be surprised.

I think you'll find Ford are stepping in to help themselves, not the supplier. They'll screw them over every opportunity they get to satisfy the bottom line just like everyone else and it's why it's all turning to crap.

I long for the time when businesses focus on producing the best product they can rather than focusing on the next month/quarter/annual profit results. The short term demands of these artificial economic measuring sticks stuff everything IMHO.

The fact that head office is in the US hasn't done locally manufacturing any favours either.

[vztrt]

Originally Posted by Raptor

I think you'll find Ford are stepping in to help themselves, not the supplier. They'll screw them over every opportunity they get to satisfy the bottom line just like everyone else and it's why it's all turning to crap.

That's why I said if it will stop production then they will step in. I was there when they were screwing over the suppliers in 06.

[WOTDAH]

Production workers in body build were told to stay at home today. Without pay I believe. I did here rumors float around this morning that things are being resolved today.

[VertexZ]

it all comes down to competitive advantage. if someone else can do something cheaper, let them! And like wise, if we can do something cheaper, then we would export it.

As far as tariffs go, thats a non issue. Local car manufacturers get alot of government support (lower tariffs make imports cheaper, government support makes local cars cheaper)

that said, I reckon pricing on locally built cars is pretty competitive compared to an import, so its not so much a price choice as a product choice (ie preferring a small car for better fuel economy, or an "SUV", to a family sedan)

[WOTDAH]

Things must have been sorted. Production was back on yesterday.

[JPFS1]

Originally Posted by WOTDAH

Things must have been sorted. Production was back on yesterday.

Things were sorted on the weekend. It's a collaboration between new supplier and Ford AUS.

This issue is bigger than just the effects we've seen on Ford AUS. But Ford (globally) won out in the end.

[Paxton]

Originally Posted by JPFS1

Things were sorted on the weekend. It's a collaboration between new supplier and Ford AUS.

This issue is bigger than just the effects we've seen on Ford AUS. But Ford (globally) won out in the end.

Is this still a local supplier, or is this one from overseas?

[Wally]

Seems it Ford that have put the skewers in:

http://www.theaustralian.news.com.au...-12377,00.html

Forty car parts jobs gone
Posted 6 hours 25 minutes ago
Updated 3 hours 54 minutes ago


Trident Tooling: 40 jobs now gone

Map: Netley 5037
Related Story: Car components firms run into trouble Forty jobs have gone from a car parts supplier at Netley in Adelaide's western suburbs.

Trident Tooling has been closed by receiver Ferrier Hodgson today, with the jobs going immediately.

Receiver David Kidman says a dispute over a $3.4 million contract with Ford North America was a major factor.

"If the money was collected it would provide some positives," he said.

Another division of the Trident group, Trident Plastics at Woodville, is still operating and the 100 jobs there are safe for now.

Nick Thredgold from the National Union of Workers is hopeful the Trident Plastics jobs can be saved.

"We're hopeful that they have a positive future there. They have some large contracts that they'll still need to fulfill so we're confident they can restructure their business and come out of this period of administration," he said.

Administrators were appointed yesterday for both companies, after a division in Victoria ran into trouble earlier in the month.

Trident supplies Holden, Ford and Mitsubishi.

[WOTDAH]

Over the weekend Ford installed a new facility which welds on parts to the Rgor, previously done by Trident. They found another company to manufacture mojority of the Rgor and now ford finish it off in house. Was relatively easy as ford owned the tooling that Trident was using.

[JPFS1]

Originally Posted by Paxton

Is this still a local supplier, or is this one from overseas?

Venture, based in Melbourne.

[JPFS1]

Originally Posted by WOTDAH

Over the weekend Ford installed a new facility which welds on parts to the Rgor, previously done by Trident. They found another company to manufacture mojority of the Rgor and now ford finish it off in house. Was relatively easy as ford owned the tooling that Trident was using.

The whole thing is an absolute mess.

This eventuated by Trident group and sub API, having outstanding issues with Ford US which related to work done on D472 starting about 3 years ago. Started a few years ago.

Trident then used their supply contract with Ford AUS as a strategic tool to use it against them to try and get a bail out/resolution.

Ford owning the assets under API is now bot clear as Ferrier and NAB will claim to have charge as they are administrators. Who gets what is not clear.

[Paxton]

Originally Posted by JPFS1

Venture, based in Melbourne.

Right next door.

This is the best outcome for JIT manufacturing.

[Road_Warrior]

Originally Posted by JPFS1

The whole thing is an absolute mess.

This eventuated by Trident group and sub API, having outstanding issues with Ford US which related to work done on D472 starting about 3 years ago. Started a few years ago.

Trident then used their supply contract with Ford AUS as a strategic tool to use it against them to try and get a bail out/resolution.

Ford owning the assets under API is now bot clear as Ferrier and NAB will claim to have charge as they are administrators. Who gets what is not clear.

So what you're saying is, that the supplier had a contract with Ford US and got the sh^ts on with them, and tried to take their tanty out on Ford Australia??

[JPFS1]

Originally Posted by Road_Warrior

So what you're saying is, that the supplier had a contract with Ford US and got the sh^ts on with them, and tried to take their tanty out on Ford Australia??

Yes, basically.

And I notice my post is a mess also.. I guess my brain doesn't always understand what my fingers are typing.. or the other way around...?

[4Vman]

Trident Plastics have been shakey for 2 years, as had Venture/DMG.

[JPFS1]

Originally Posted by 4Vman

Trident Plastics have been shakey for 2 years, as had Venture/DMG.

yep.. and it's likely to stay that way/get worse for some of the local suppliers if Ford continue their grand plan.

[4Vman]

Originally Posted by JPFS1

yep.. and it's likely to stay that way/get worse for some of the local suppliers if Ford continue their grand plan.

Trident have been slow payers to their suppliers for a long time too, they even sent 1 supplier/contractor broke last year albeit it didn't help that his work wasn't up to scratch..

[vztrt]

Go Auto is quick about this.

http://www.goauto.com.au/mellor/mell...2575D3001F5CB1

Supplier woes halt Ford factory

Trident the latest auto parts-maker to hit strife, stopping Ford production

By MARTON PETTENDY 12 June 2009

THE Trident group of companies is the latest Australian car parts-maker to strike financial problems, with the voluntary liquidation of Active Plastics in Melbourne forcing Ford Australia to cease production at Broadmeadows last Thursday (June 4).

Ford was one of the largest clients of Active Plastics and worked with the supplier to relocate its own tooling to another component manufacturer over the weekend to recommence production.

Toyota Australia said the closure of the Trident company did not affect production at Altona because it was not a supplier to Toyota.

Similarly, GM Holden spokesman Jonathan Rose said production at its Elizabeth plant outside Adelaide was not impacted, “but we continue to monitor the situation”.

Separately, another Trident company, Trident Plastics in Adelaide, went into voluntary administration on Tuesday (June 9).

The Woodville-based company is a major supplier to Holden, Ford and tier one supplier Futuris, for which it supplies several large injection-moulded plastic door trim and seat components. Futuris’ major client is Holden, with Ford taking a smaller number of parts.

GoAuto understands the administrator of Trident Plastics, which at this stage continues to operate as normal, will meet with creditors over the next week to determine the appropriate course of action.

“We will continue to work with the administrator and monitor the situation but at this point we are unaffected,” said Futuris managing director Mark De Wit. “It’s business as usual out of that factory, under the guidance of an administrator.

“There have been no production stoppages there at this point and hopefully there won’t be. Our people are meeting with the administrators to understand what the likely course of action will be.

“Parts continue to come out for all customers including us, so there is no need for any panic. I think this is going to take a few weeks to pan out,” said Mr De Wit.

The ABC this week reported administrator John Morgan as saying key financial backers had agreed to stand by Trident Plastics, which employed 100 workers and hoped to survive on $5 million of existing contracts.

“In the next couple of days we're going to be talking to the major customers of the business so that we can get continued support from them to get some cash flow into the business,” Mr Morgan told the ABC.

“There are a number of contracts and that's what we got to talk to the customers about.”

At this stage no car manufacturers have removed tooling from Trident Plastics, despite the fact that another Adelaide-based Trident company, Asia-Pacific Tooling, is now also in receivership and that Adelaide’s Trident Tooling closed its doors on Wednesday (June 10).

Meantime, Trident Tooling’s demise on Wednesday resulted in the loss of 40 jobs, after the company failed to secure new supply contracts this year.

“Trident Tooling completed a significant contract with a major car-maker in December last year and has not been able to replace that work, with a catastrophic effect on its cashflow,” said receiver David Kidman in a statement.

Mr Kidman said buyers would be sought for Trident Tooling’s plant and equipment, which will have no immediate effect on Australia’s three car-makers, and that he hoped all workers at Trident Tooling would be paid full entitlements under the federal government's employee redundancy scheme.

Ironically, Trident Tooling’s closure was announced the same day the federal and state government’s issued a press release to announce the appointment of an auto components industry advisor, which will assist companies like Trident to avoid similar financial problems.

[amazon]

Is there any safety cocerns to the manufacture of the RGOR bar,testing etc

[amazon]

Relating to ford looking after themselfs, double standers i cry,
The goverment just helped ford out with millons of dollars and now when a supplier is in trouble they are left out in the cold .

[vztrt]

Tasmanian Government saves ACL from closing down.

http://www.goauto.com.au/mellor/mell...2575E5001A751B

Ford, Toyota production safe as ACL bailed out

$7 million grant saves Tasmanian bearing-maker one day before crucial loan deadline

By JAMES STANFORD 30 June 2009

A POTENTIAL production shutdown at Ford and Toyota has been averted with a $7 million federal government grant ensuring engine component-maker ACL keeps its doors open.

Industry minister Senator Kim Carr announced on Monday that ACL Bearings, which produces bearings in Launceston and gaskets in Brisbane, would receive the Automotive Industry Structural Adjustment Program grant to ensure it met a $3 million loan deadline due today.

The federal government previously approved a $4 million assistance package for the component producer, but required security from the Tasmanian government.

The Tasmanian government would only lend money to ACL if its directors personally guaranteed the money, something two out of three ACL directors were not prepared to do.

Yesterday, Senator Carr announced the new deal with conditions, including ACL being required to meet a series of milestones such as making an investment in its restructuring from its own resources.

GoAuto understands Ford and Toyota are also helping the company with a confidential assistance package.

Senator Carr said 5000 people would have faced losing their jobs as a consequence of an ACL closure.

He said it was important that ACL, which has recorded losses of $11.5 million and $8.7 million in the past two financial years, be given a chance to stay afloat.

“This is a decision in the national interest. If ACL had collapsed, Ford and Toyota would have been in very difficult circumstances,” he said.

“Thousands of workers would have been stood down and production lines would have halted. There would also have been serious flow-on implications for other parts-makers who supply Ford and Toyota.”

ACL Launceston workers had already been working four-day weeks, which represents a 20 per cent pay cut, to give the company every chance to survive. This arrangement will continue as the company restructures over the next three years.

ACL chairman Ivan James said the company would be transformed under a 14-point plan that included investment in new tooling and product development.

“This is a chance, a once-in-a-lifetime chance for many of our people to reinvent the company and prepare it for its future,” he told the ABC.

[Bossxr8]

Lucky the government stepped in, without pistons and bearings we would have been stood down within hours.