Car industry issue set to be resolved

CAR maker Ford expects to be back in production on Wednesday with issues surrounding a key component supplier set to be resolved.

Autodom Limited, which operates manufacturing facilities in Adelaide and Melbourne, was placed in voluntary administration at the weekend after closing its doors and standing down about 400 workers last week.

The company supplies parts to all three Australian car producers - Ford, Holden and Toyota.

Talks involving the administrators, the company, car producers and banks have centred on kick-starting production as soon as possible to prevent Ford and Holden having to stand down their own workers.

Ford said it now believed a resolution would be finalised on Monday and there would be no disruption to its production schedule.

The company had already scheduled a down day on Monday and would again be closed on Tuesday for the Melbourne Cup.

Holden was thought to be facing a similar situation, with assembly operations likely to resume on Tuesday, while Toyota was less affected after previously indicating it had enough parts to last until Christmas.

Earlier on Monday, Australian Manufacturing Workers Union (AMWU) Victorian secretary Leigh Diehm said the next 24 hours would be crucial in minimising the impact of Autodom's problems on Australia's car industry.

"The best-case scenario is obviously all our members back at work and the company is able to trade out of this current administration," Mr Diehm said.

"The next 24 hours is crucial and that'll be dependent on the car companies and also the banks, which have been in discussions all across the course of the weekend, and obviously the administrators, being able to find some cash to pay suppliers and get product rolling off the lines again."

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