Car parts maker Autodom placed in administration

Unions predict that major car makers may have to stand down workers after car parts supplier Autodom was placed into voluntary administration.

The company indefinitely closed its sites in Victoria and Adelaide last week, leaving 400 workers with an uncertain future.

Autodom supplies bumper bars and brake parts to Ford, Holden and Toyota.

The South Australian firm, Macks Advisory, has now taken control of Autodom's assets and has began assessing its financial position.

Leigh Diehm from the Australian Manufacturing Workers Union says workers are worried.

"Our members were quite concerned last week when workers were stood down and sent home and basically told they would get a phone call.

There's no doubt this news will be very concerning for our members," he said.

"Christmas is coming up and unfortunately there are a lot of redundancies at other places.

"You've got the redundancies at Ford coming up, they're going through that process now the CMI company's are still due to be closed and that's in coming weeks, so there's going to be a hell of a lot of people looking for work." Mr Diehm says it is in the interest of the whole industry to keep Autodom open.

"We saw it during the CMI liquidation, then administration, a number of stand downs at Ford but that will mean a lot of work being done in the next 24 hours to get the door of this company re-opened," he said.

Autodom has blamed a downturn in the number of vehicles being built since the global financial crisis.

Autodom chief executive Calvin Stead has told ABC's Inside Business says the company has seen business drop by half since 2008.

He says negotiations are underway to restructure the group.

"We felt that it was time that we had to close the doors for a period of time to let those negotiations actually mature and try and get to an end point pretty soon," he said.

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