Ford Australia may lay off 1800 production workers after a key parts supplier, CMI Industrial, was placed in administration.
CMI supplies suspension components for the Ford Falcon and Territory SUV.
About 100 workers at CMI in Campbellfield were locked out of the plant by a landlord seeking more than $100,000 in unpaid rent, it was reported this week.
CMI supplies suspension components to Ford for the Falcon and Territory SUV.
Ford’s supply process means it only has enough suspension parts to continue production for the next day or two.
CMI Industrial makes components for the automotive, whitegoods, transportation and water storage industries and has facilities at Campbellfield, West Footscray, Ballarat and Horsham in Australia. Its New Zealand operations are not affected.
McGrath Nicol will administer CMI. Spokesman Keith Crawford said the objective was to work with CMI Industrial’s key to stabilise operations and facilitate a thorough assessment of the financial position of each business unit.
“In the interim we will be liaising closely with employees and unions, customers and suppliers to ensure minimal disruption to operations,” he said.