Struggling car parts maker APV stands down 126

[Jason[98.EL]]

not good

taken from here after seeing it on the news

Originally Posted by ninemsn

More than 120 automotive workers have been stood down without pay, with a struggling Melbourne car parts manufacturer placed into receivership.

APV Automotive Components, based in Coburg, cannot afford to pay its 126 staff thanks to a sharp drop in orders for the parts it makes for Holden, Toyota and Ford.

Receivers took control of the business on Tuesday after talks to reach agreements on a voluntary redundancy program and a new enterprise agreement failed.

Receiver Stephen Longley said urgent discussions would take place with customers, employees, unions and suppliers to try to restructure the business and resume operations as soon as possible.

"In the meantime, it has been necessary for the receivers to stand down without pay the company's employees as there are not sufficient funds for us to meet payroll or other operating costs," Mr Longley said in a statement.

APV Automotive Components, established in 1946, supplies Australia's big three car companies with fuel fillers, rear suspension struts and steel and fabricated parts.

Opposition Leader Daniel Andrews said the news served as another reminder why Premier Ted Baillieu needed a plan to create and secure jobs.

"We've got real challenges right across the Victorian economy and this is another example of why Mr Baillieu needs to start working to keep Victorians in work," he told reporters.

"For these 126 and for thousands of others, the premier just can't keep going on burying his head in the sand. There is a jobs crisis and he needs to act."

Mr Andrews said the government needed to provide whatever support is necessary to ensure the workers are treated fairly.

[Dr Smith]

Just a bit more info on what they actually make, as to what Ford uses maybe someone in the know could add that.

APV Automotive Components Pty Ltd
Products/Services:
Fuel filler pipes,
Oil filler pipes and dipsticks
Power steering tube assemblies
Fan shrouds
Fuel-tank bands
Seat frames
Recirculatory exhaust gas tube systems
Leadfree fuel restrictors
Fuel and brake lines
Air conditioning pipes
Tubular boot hinges
Tubular engine assemblies
Oil strainer assemblies and tubular brackets.

[bobthebilda]

Looks like there might be a scramble to get replacement parts. Going by the numbers quoted on their website (as per below), they seem to make parts for just about every car made in australia.

Example (per day)
- 4000 Suspension Arms
- 1300 Boot Hinges
- 1000+ Fuel Fillers
- 1000+ Engine Components

Does anyone know what happened with the DSI issue? There were a few write ups a few weeks ago that they laid off all workers due to a faulty imported part, but no news on whether they have gone back to work.

[pottery beige]

bugger.. never good news..

[HI PSI]

I seem to remeber the LAbour government spruiking about Australia not being affected by the GFC.... At the current rate of job losses and the downward spiral of the property bubble... God bless us all.....

[mr smith]

Originally Posted by HI PSI

I seem to remeber the LAbour government spruiking about Australia not being affected by the GFC.... At the current rate of job losses and the downward spiral of the property bubble... God bless us all.....

Yup, the handouts are long spent and the reality of too much debt is starting to strangle our country.

[Dr Smith]

Originally Posted by HI PSI

I seem to remeber the LAbour government spruiking about Australia not being affected by the GFC.... At the current rate of job losses and the downward spiral of the property bubble... God bless us all.....

Except the GFC hasn't stalled the overall cars sales market here so I don't think that applies here as APV supplies componenets for locally built cars and it's the declining sales of locally built cars which has hurt it.

[superroo]

And yet they had the money to buy what was left of autoliv not to long ago

[bobthebilda]

Originally Posted by superroo

And yet they had the money to buy what was left of autoliv not to long ago

Yes probably a bit odd that with some good paper shuffling, directors of the company manage to keep control of a $10 million dollar investment, whilst other workers payouts will now be paid by taxpayers thru GEERS.

http://www.caradvice.com.au/167450/a...fers-new-blow/

Only in May last year, APV stepped in to save the Autoliv crash test facility in Campbellfield, in Melbourne’s northern suburbs, with a $10 million investment.

The Autoliv facility falls under the companies safety division – run as a separate operation – and is believed to be financially secure avoiding the fiscal problems of the automotive components division.

[Franco Cozzo]

The HMAS Victorian Manufacturing is sinking and we're shuffling the chairs on deck 13.

[imugli]

This is not being caused by the GFC.

This is being caused by a fundamental shift in the economics of production and manufacturing away from Australia to other nations. And this is just the start. This will eventually land at the auto manufacturers doors and they'll pack it in as well.

Why would you source all your parts from Asian countries, only to ship them here and pay Australian wages to have them turned into cars when you can source from all over Asia, ship them to Thailand or Korea and pay Asian wages to have them turned into cars there?

You save on shipping costs, you save on wages and you have more wriggle room with regards to content / pricing models.

Give it time. It's moving up the chain...

[Iggypoppin']

Sad news. My heart goes out to those with families and mortgages. I hope things pick up in aus for our work force.

[mik]

it`s been happening for ages, i`ve said it before, it`s not just the auto industry, people are hurting from the cost of living and the cost of doing business here in Australia, peoples buying habits are changing because of it, and it`s hitting our manufacturing like a ton of bricks,
instead of buying local products people are buying the cheaper crap from over sea`s, the more our illustrious leaders keep making policy that makes life more expensive, the the worse the problem gets....... i hope there`s plenty of room in the mines.

[MAD]

Originally Posted by mik

peoples buying habits are changing

Totally agree. But it's not only hitting manufacturing, it's pounding retail as well.

I think we've always had a general want for quality items that would last forever, but now, with the high costs of living, and still having the want for "keeping up with the Jones' ", people are sacrificing quality so they can have stuff.
But, as it turns out, quality doesn't seem to matter all that much because when 2 years rolls around and it's time to upgrade... again... the cheap POS you bought is still working, so why won't the next cheap POS keep working until it's time to upgrade again.

A disposable society doesn't like to pay a lot for something when it's future worthlessness is easily visible on the horizon.

[Franco Cozzo]

Originally Posted by imugli

This is not being caused by the GFC.

This is being caused by a fundamental shift in the economics of production and manufacturing away from Australia to other nations. And this is just the start. This will eventually land at the auto manufacturers doors and they'll pack it in as well.

Why would you source all your parts from Asian countries, only to ship them here and pay Australian wages to have them turned into cars when you can source from all over Asia, ship them to Thailand or Korea and pay Asian wages to have them turned into cars there?

You save on shipping costs, you save on wages and you have more wriggle room with regards to content / pricing models.

Give it time. It's moving up the chain...

I work for a emergency vehicle manufacturer, this has been the latest rumours on the floor as we're wondering what is going to happen to us as we know the place is having some difficulties but management wont let on to us about the full story.

We already have our furniture for our vehicles made in China, same with our wiring loom, basically we where wondering what would stop them from the van being made in Germany, coming on the boat but stopping at China, getting fitted out there then coming here to a small Q/C team to check it out, then pass it on?

That would be entirely possible, and given that the company has been bought into by investors, we're wondering if we've been given the whole story.

[mik]

my brothers job is in doubt too, they have already let over 80 people go , they kept him on for his networking and electronics skills, but he already knows for sure they are moving operations to asia, he knows he`ll get the bullet , but not when.