Auto manufacturers could supply to importers, says FAPM

Creating parts for imported vehicles was a possibility for components manufacturers, a sector that is expected to suffer hundreds of job losses as a result of Holden’s cuts announced this week.

The ABC reports that Richard Reilly of the Federation of Automotive Parts Manufacturers there was some hope in that area, as well as in serving industries other than auto.

This week Nissan Casting Australia announced that its factory, which manufactures for 30 models of vehicle – including six in Australia – and the Nissan Leaf would continue beyond 2020. The factory employs about 160.

"Certainly some components manufacturers do have that scale and that's where some of the opportunities will lie when the vehicle manufacturers cease," Reilly told the ABC.

Suppliers to auto needed to create innovations that were wanted by the rest of the world, whether these were in automotive of other industries, such as defence, he offered.

"That is where the future is, going forward I think, for the majority of components manufacturers," said Reilly.

As reported on Monday, Holden will reduce production at its Elizabeth plant from 290 to 240 cars a day by May 25. About 270 workers would be laid off.

The flow-on effects aren’t exactly known, but the AMWU has said total jobs lost could be as many as 1,000.

"We're talking 270 but it's actually closer to a four-figure amount," said the union’s Dave Smith.