“Indefinite” halt at Autodom factories affects 400 workers

Autodom, which manufactures car parts under subsidiaries Dair and AI Automotive, has announced that three of its factories have suspended operations, meaning 400 workers face an uncertain future.

Autodom, which manufactures car parts under subsidiaries Dair and AI Automotive, has announced that three of its factories have suspended operations, meaning 400 workers face an uncertain future.

The Australian Workers Union said that 130 workers at Dair showed up for work this morning at Woodville in north-west Adelaide and were told they were no longer required, as steel supplies had run out.

"What's even more alarming is that there will be a ripple effect right throughout the car manufacturing industry in terms of Toyota, Ford, Holden, so there is quite a widespread effect that will ripple through the automotive components and motor vehicle industry," the union’s Wayne Hanson told the ABC.

Victorian sites at Dandenong and New Gisborne have also had their production put on hold.

Autodom has called a trading halt and said that factory doors will remain shut for the foreseeable future. Autodom supplies Toyota, Holden and Ford, and has cited the decline in demand for locally-made vehicles as being behind the shutdown.

“Our company is constrained by high fixed costs that cannot easily be aligned to the pace of the current volume reduction in the local car manufacturing sector,” said CEO Calvin Stead in a statement. He also said that “time and assistance” were needed by the group.

The Australian Manufacturing Workers Union and others have noted the possible supply chain consequences from Autodom’s decision.

‘‘If the company goes into administration it could be a situation where the car companies could find themselves without a supplier,’’ Leigh Diehm from the AMWU told The Age.