By PYC Bearings
©2004-2008
THE Federal and Tasmanian governments will join major car companies in rescuing a parts manufacturer whose financial troubles have threatened to shut down the industry.
Launceston's ACL Bearings is the only supplier of precision auto bearings to Ford, Holden and Toyota.
ACL, along with parent company - Australia's largest independent distributor of automotive parts, National Parts, - are under administration.
Ford, Holden and Toyota are providing ACL with a rescue package worth an undisclosed sum.
Industry Minister Kim Carr said the Rudd government would chip in $2 million, while the Tasmanian government would contribute $330,000.
He said the rescue package would allow ACL to trade out of its "acute liquidity problem" and allow it to clear its debts.
"Some of the bigger companies only had five days supply (of parts) on hand," Senator Carr said.
"These are exceptional circumstances which require urgent measures to prevent an industry wide shutdown with ... tens of thousands of layoffs."
ACL would be required to implement an efficiency and productivity strategy to secure the viability of the company into the future, Senator Carr said.
Tasmanian Economic Development Minister Paula Wriedt said ACL Bearings made a significant contribution to the economy, and the package would give the company's 285 staff the security they needed to get on with the job.
Federal Chamber of Automotive Industries (FCAI) chief executive Andrew McKellar welcomed the federal and Tasmanian governments' support for ACL.
"The move is a pragmatic response to what is a short-term and exceptional circumstance that a key manufacturer to the Australian automotive industry is experiencing," he said.
This financial support recognises the regional significance of the company and the importance ACL.