CMI Fuel Systems, a key supplier to Ford and Holden, has moved into voluntary administration.
The company makes LPG cylinders for the Falcon and Commodore models, and will continue operations at its Bayswater plant in Victoria until a new buyer can be found for the business.
With the plant still in operation 30 jobs will be sustained at the company, and supplier aiAutomotive has entered into a deal to manage and operate CMI's business.
Ai Automotive went into administration last year but the company's receivers, McGrath Nicol, said it had taken temporary management of CMI with a view towards a possible purchase.
CMI is the latest automotive supplier to fall on hard times, with SMR also announcing plans this week to cut jobs and move part of its manufacturing production to Thailand.
Holden said it had an adequate supply of LPG tanks and the changes were not to expected to cause any disruption to its manufacturing production.