Ford Australia Resumes Production After Parts Problem Resolved

Ford Australia assembly plants resume production after receivers of parts-maker CMI Industrial reach an out-of-court settlement with the supplier’s landlord.

The building owners locked CMI workers out over the non-payment of A$116,000 ($120,000) in rent.

Ford halted production and idled 1,800 workers at its Geelong and Broadmeadows factories in Victoria after it ran out of parts from the supplier last Thursday.

CMI makes seatbelt restraints, airbags, brake-pad backing plates, suspension components, intake and exhaust manifolds and door- and trunk-hinge parts.

The company also operates a distribution center in Columbia, SC, supplying brake components to U.S. auto makers, including Ford and General Motors, through Tier 1 suppliers.

The Age newspaper in Melbourne says CMI was forced into receivership by Ford, one of several companies owed money by the parts maker.

“CMI returned to work on Saturday and began making parts for us again on Monday,” a Ford spokeswoman tells WardsAuto in an email. “Our plants are starting up production (Wednesday) as planned.”

The Australian Associated Press says CMI is being restructured in preparation for a possible sale and that 44 workers have been laid off.

“We have taken a necessary step to improve the prospects of the business and to ensure that it can continue to meet its supply commitments,” receiver Keith Crawford is quoted as saying.

“Our aim continues to be to put CMI Industrial back on a viable footing to prepare its business and assets for sale,” he adds. “Over the next few weeks, the business will be the subject of ongoing assessment to determine the structure, timing and approach of the business sale.”