Car sales are rising but parts makers are crumbling.
While the sales of locally made cars are remaining strong despite the rise in interest rates and fuel prices and the outlook for the industry looks promising the same cannot be said for the parts industry.
As the major car manufacturers seek even more ways to make a profit some part of the industry has to suffer and here in Australia it’s the parts manufacturers that are beginning to buckle. This year we have already seen two parts makers reach the point where the big four of Holden, Toyota, Ford and Chrysler have had to prop them up and now a third company is on its knees
Irons Engineering in Adelaide make seats, schock absorbers and transmission parts for Holden and Ford and now they’re in administration with worse to come. The Australian Workers Union believes the company has just about reached the end and will soon cease trading completely.
If it does cease trading then Holden will be the first to feel the impact.