Another supplier hits the wall......

[caz_375]

From the Daily Telegraph.


Ajax Fasteners, a division of Global Engineered Fasteners (GEF), supplies automotive and industrial fasteners to Ford, General Motors Holden, Toyota and Mitsubishi.

The company, which is based in suburban Braeside, manufactures engineered fasteners for use in engine, driveline, vehicle assembly and brake systems.
Ajax Fasteners employs up to 195 people.

The directors of GEF today appointed Stephen Longley and David McEvoy, of PricewaterhouseCoopers, as voluntary administrators of the company.

Full story http://www.news.com.au/dailytelegraph/story/0,22049,20050248-5001028,00.html

Is becoming a regular occurance, unfortunately.

[fpv_gtho]

Hopefully over the next few years theres enough coming in from Detroit to keep the locals busy. Ford has the T6 platform on their plates as well as finishing the E8 Falcon and Territory, and adapting them to LHD so theres some glimmer. Holden too could get more RWD related work from GM, and will have to keep Zeta fresh regardless which could turn out to be a 6-9 year timeframe

[caz_375]

I'd imagine the car manufacturers themselves would have a lot to do with these struggling supply companies...not just the downturn in local production. In an effort to reduce manufacturing costs i imagine that the likes of Ford and Holden really pressure these suppliers to cut their pricing, which eventually leads to what we are seeing. Heck, GM did it to their owned supplier Delphi if i remember correctly. Surely it would be much better for the companies to work together so that both businesses are viable?

[fpv_gtho]

Well theres a handful of people who think Holden/GM are partly responsible for Ion's collapse with the pressure they applied on them to establish their production facilities for the Alloytec blocks.

[caz_375]

And the strangest the strange thing is , you'd think that the likes of Holden would be bending over backwards to ensure their suppliers remained solvent. Suppliers going bust doesn't help anyone.

[fpv_gtho]

They were apparently losing alot of money having to import the blocks out from Mexico so you would think they'd be able to make it work out. I guess with Holdens push from GM though theyre finding more friends in the South Asian market as far as supply goes though.

[caz_375]

Looking bad for Ajax fasteners...

http://www.news.com.au/dailytelegraph/story/0,22049,20100569-5001028,00.html


CRISIS talks loom as fears that almost 200 workers at a Melbourne car-part company could be out of work after Monday, a union official says.



Ajax manufactures engineered fasteners for use in engine, driveline, vehicle assembly and brake systems.


"They don't have enough money to pay the wages next week," Mr Shorten said.

"They need $450,000 by Monday and $2 million by August 18. Holden and PBR have agreed to provide funding but the issue is with Textron and Ford. It's required that the three customers find the wages for the payroll."


"PBR will be out of bolts and fasteners within 14 hours (if production ceases)," Mr Shorten said.


"Holden will run out on Monday afternoon and Ford will run out of fasteners within a week."

Not exactly what anybody needs at the moment....especially with the glut of new cars currently being released. The car companies should bail them out, too. It's more than likely that their pressures of cost-cutting have led to this predicament....unless i'm missing something.

[SlickHolden]

It seems like they don't have the best handle on the business with the times.

[caz_375]

But you've gotta remember, i suppose, that there is a lot of pressure from the car makers to reduce the costs. If companies like Ajax don't meet the manufacturers pricing schedules, the work goes elsewhere. I'd imagine this leads to suppliers like Ajax agreeing to terms and than trying to reduce there operating costs to suit...without much success it seems.

[SlickHolden]

But holden and ford are the same they have made many cutbacks and still been able to keep up demand output still making profits.
Someone like Toyota oz only making 55mil was a shock.

Maybe these suppliers need to also find cheaper parts for themselves to be more competitive, Cut some of the work force off as holden and ford have done and try that find ways to cut cost of everyday work, Do they really need them fancy cars out the front? Them big fat lunch's they do when entertaining, Work harder for your meal.
Everything now a days is easier then the past, Computers do so much and it makes people lazy, takes 3 people to do a 1 man job now:p.
Send me in my family doesn't call me the bank of for nothing:D

[fpv_gtho]

Slick i used to think Toyota having such little profit was because they didnt have to rely so much on every unit sold with how well Toymota global is going, so perhaps they were selling them nice and cheap, but supposedly theyve been lying to the taxman in the past.

[SlickHolden]

Ahh they are doing dirtys:D

So is it they really should be Falcon/Commodore prices but they cut price on them all to make really small profits here and rely on there global profits ?. Is our market really that important that they will cut prices to sell the most?. Maybe that Ford and Holden's weakness of selling here and not having 500,000 cars sold world wide also?.

[fpv_gtho]

Well they supply the Middle East out of Victoria so the local operations means more to them than what they sell in Australia. I dont know though how the profits are supposed to represent the advertised price vs build price

[SlickHolden]

Cheaper for them to send cars from here then overseas?