“Reverse supply chain” partnership announced for auto sector

Wickman
Group, Grant Thornton Australia and Liquidity Services Inc. have announced a
three way partnership relating to the collapse of Australia’s passenger car
industry and resultant surplus asset sales.

The
partnership was re-announced this morning in a statement from Liquidity Services Inc., a US-based auction marketplace for business surplus.

In
the statement, Wickman cites the end of Australian manufacturing operations for
Ford, Holden and Toyota and the impact on first, second and third-tier
suppliers.

Ford will end its Australian car assembly operations in 2016 and Holden and Toyota the year after.

“The purpose of the
partnership is to work as a support system and provide value added outcomes for
plant and equipment disposal,” said Wickman’s commercial director Owen Coyne.

Both Wickman and Liquidity
Services are involved in the “reverse supply chain”, and Wickman is a manufacturer
of machine tools and an international player in the trade of machinery.

Grant
Thornton Australia’s Mark Phillips said the demise of the local automotive
industry was unfortunate, and the partnership could be of value to component
makers by providing “greater
opportunity to consider diversification by maximising the value of their
current equipment, providing liquidity to purchase the right equipment for
future manufacturing requirements.”

Phillips
leads Grant Thornton’s National
Automotive Manufacturing team. As reported by The Australian this week, his company is currently advising
some in the auto sector on ways to adapt to a future without a local car
manufacturing industry.

Image: http://guardianlv.com/