Car Industry on Brink of Collapse as Ajax Supplier Talks Falter

Australian car makers could stand down thousands of workers this week, causing millions of dollars in economic losses, as the industry struggles to agree on a rescue package for parts supplier Ajax Engineered Fasteners. Ford is considering standing down up to 4000 workers, while Holden has flown in parts from overseas to keep making cars until Monday, and Toyota has guaranteed work for its 3500 workers for today only.

The stalemate follows nearly 200 workers at Ajax being stood down on Friday after its main customers could not agree on a $10 million rescue package. The deal involved a $2 million cash injection, underwriting of losses, and a trust fund for workers' entitlements. Talks between the administrator and the car industry are continuing, but unions warn that it may already be too late to save the industry.

Key Takeaways:

Up to 4000 workers at Ford's Broadmeadows and Geelong plants could be stood down due to the dispute.
Holden has flown in 10 tonnes of steel from overseas at a cost exceeding its contribution to the rescue package to ensure production of its new VE Commodore model.
Toyota has guaranteed work for its 3500 workers at Altona for the day but will not speculate beyond that.
The collapse of Ajax could lead to a loss of $105 million in turnover and $236 million to the economy if all three car companies closed down.
Over 30,000 workers across the car industry could be stood down if Ajax remains shut for a month and component makers are also affected.
Mazda is not mentioned in the article but it's a part of the mention of "the three car companies" in the original text, hence, 3 companies are Ford, Holden and Toyota.
Holden has imported 10 tonnes of steel from Europe and the United States, with each bolt costing more than its money contribution to the rescue package.

Statistics:

$105 million: potential loss of turnover to the industry if all three car companies closed down.
$236 million: potential economic loss if all three car companies closed down.
30,000: estimated number of workers who could be stood down across the car industry if Ajax remains shut for a month and component makers are also affected.
4,000: estimated number of workers at Ford's Broadmeadows and Geelong plants who could be stood down.
10 tonnes: weight of steel imported by Holden from Europe and the United States.
2,000,000: dollars in cash injection into the rescue package.
10,000,000: dollar value of the total rescue package.

Sources:

Meaghan Shaw, Workplace Editor, The Australian
Australian Industry Group
Australian Workers Union
Holden spokesman Jason Laird
Ford spokeswoman Sinead McAlary
Prime Minister John Howard
Victorian Manufacturing Minister Andre Haermeyer
Cesar Melhem, Australian Workers Union state secretary
Steve Dargavel, Australian Manufacturing Workers Union assistant state secretary
David Gelb, motor industry specialist at KPMG