Autoliv to shut down

[vztrt]

Death knell for Autoliv

http://www.goauto.com.au/mellor/mell...257865001E36EE

Safety supplier Autoliv winds up its Australian operation as more jobs go offshore

1 April 2011

By RON HAMMERTON

AN Australian automotive parts and safety engineering company that employed more than 1000 people at its peak about six years ago will be left with a staff of just eight by Easter, when engineering and administration staff join their factory colleagues in the redundancy queue.

Autoliv Australia Pty Ltd – a subsidiary of the giant Swedish-American auto safety systems conglomerate that supplies all of the world’s largest car-makers with items such as airbags and seatbelts – is also trying to sell its crash test centre in Melbourne as it winds down its local operations.

The company moved its original-equipment manufacturing operation to Thailand in December, effectively closing the factory at Campbellfield, down the road from one of its biggest customers, Ford Australia.

That Autoliv plant supplied safety systems to all three Australian car-makers and at least 12 overseas customers.

The engineering department is set to close on April 21, leaving a team of about eight in a local office to liaise with Ford, Toyota and Holden on behalf of Autoliv’s overseas engineering and manufacturing centres.

The company’s aftermarket division, Klippan, will continue making some aftermarket seatbelts and safety harnesses in Australia, but only in small volumes. The division currently employs about 50 people.

Just last week another high-profile parts supplier, Robert Bosch Australia, announced that it was planning to relocate about three quarters of its local manufacturing to overseas factories with the loss of 380 jobs by 2013.

Like Bosch, Autoliv Australia has been regarded as a cutting edge tier-one automotive supplier, with global-class export quality.

The company reached its peak in the mid-2000s, when it was supplying seatbelts and other safety components to Australian car-makers and export markets on a large scale.

The problems started when a contract to supply seatbelt systems to a South Korean car-maker lapsed with the end of particular model in the mid-2000s, and a subsequent contract was filled by Autoliv’s South Korean factory.

In a double whammy, Autoliv also missed out on a major contract to supply restraint systems to Holden for its VE Commodore when it was launched in 2006.

While it continued to supply child seat restraint anchors to Holden – as well as full safety systems to Ford Australian and some systems to Toyota – the loss of the VE business to an offshore competitor was a blow to the viability of the local manufacturing operation.

In 2009, rumours that Autoliv was planning to move offshore surfaced during enterprise bargaining negotiations.

Then Autoliv Australia managing director Seamus Power told GoAuto at the time that the rumours were unfounded and that they had been triggered by the company’s offer of a modest pay rise over the first two years of the three-year EBA, with a larger rise in the third year, giving rise to speculation that local manufacturing would be shut within two years.

GoAuto understands Mr Power left Autoliv Australia in February.

The company’s general manager of engineering and marketing, Andrew Baldacchino – himself facing redundancy on April 21 with the rest of his team – told GoAuto today that he believed Autoliv management here and overseas had no plans in 2009 to shut the local original-equipment manufacturing and engineering operation.

He said global pressures had subsequently forced the decision, with local staff being told in April last year that the operation would be wound back.

Mr Baldacchino said Autoliv’s human resources department had organised a jobs fair that was attended by about 25 companies looking to recruit staff.

He said a good number of the Autoliv staff had found work, including three of his engineers who were leaving this week.

“Come Easter this year, myself and the remainder of my department finish up, and all the other functions – financial, quality, purchasing and all that kind of activity – finishes up pretty much all as well,” he said.

“There is a Klippan organisation, which is our aftermarket group, that’s still remaining, in the order of 50 people. They make seatbelt systems and special safety harnesses for the aftermarket.

“Effectively, Autoliv has ceased OE (original-equipment) production.

“On-going, what will remain is a small technical and sales office, to handle the account management to service the customers.

“So there will be a small sales team with application engineering and some quality support roles. That will be a small office of about probably eight people, and they will be the interface between the car-makers and our manufacturing and technical sites.”

Mr Baldacchino said he was not in a position to discuss the proposed sale of the Autoliv crash test centre.

GoAuto understands that sale is being handled by Autoliv Australia chief financial officer Glenn McKinney, who could not be contacted today.

The centre, regarded as one of the finest independent car crash test facilities in Australia, is understood to be manned by a small staff while its future is decided.

Mr Baldacchino said the decision to close the Autoliv OE manufacturing and engineering operation had been disappointing, but had to be respected.

“That’s the nature of the beast, but it is a shame because there is a lot of expertise in terms of restraint systems and occupant safety, as well as a very highly awarded history in terms of manufacturing capability and skill sets, and that has unfortunately left the Australian market,” he said.

“We were the only manufacturer (of seatbelt systems) in this country and not just providing a product but all the engineering and technical skills that go along with providing that, as well as our manufacturing footprint in terms of the skill sets there.”

Autoliv, which has its headquarters in Sweden, has 80 facilities in 29 countries, with a global workforce of 43,000.

In its 2010 financial year, it reported a gross profit of $US1.6 billion on sales of $7.1 billion – a gross profit margin of 22.2 per cent.

Autoliv has 10 facilities in China, announcing another $6 million factory there just last week.

[Silver Ghia]

Real pity. I can see in not too distant future Australia won't be manufacturing much at all. Why isnt the Federal govt doing more for local production? Import tarrifs keep reducing, and local manufacture along with it.

[mr smith]

If anyone here works in manuafcturing (especially auto manufacturing) get your finances in order. The next few years are going to be very interesting.

[G6ET8U]

This is such a shame. We as Australians should be protecting our industry. Not destroying it.

We are in a unique position and it should be protected.

It is quite clear from the NZ auto industry that it's all good and well to go to full importing of cars but the flow on effects are just enormous. It isn't the 1000's that lose their jobs in the car plants... it's the 100,000's who lose their jobs because the car plant has closed down.

No one wins here. No one.

[b2tf]

Originally Posted by Silver Ghia

Real pity. I can see in not too distant future Australia won't be manufacturing much at all. Why isnt the Federal govt doing more for local production? Import tarrifs keep reducing, and local manufacture along with it.

They are - carbon tax remember? It's going to look after the little bunny rabbits and people that chain themselves to trees.

[Silver Ghia]

Originally Posted by b2tf

They are - carbon tax remember? It's going to look after the little bunny rabbits and people that chain themselves to trees.

Yeah, didnt want to mention it but now you did, maybe thats their way of reducing carbon, reducing manufacture and let other countries not so concerned about the environment produce the products instead.

[G6ET8U]

It isn't just manufacturing either.

Remember how big Toll Auto Logistics is too in Australia. Everything that moves around locally from manufacturers to your Fords/Holdens and Toyota's is moved by Toll. It is no wonder they have been moving themselves in to Stevedoring in the last 4 or 5 years. They need to in order to keep their business going. They are positioning themselves to now recieve the freight (cars and parts) in to Australia and then distribute them.

This has massive ramifications in Australia.

[vztrt]

Autoliv crash test centre saved

http://www.goauto.com.au/mellor/mell...25789600299A2B

Aussie parts company APV steps in to buy Autoliv’s crash test facility in Victoria

20 May 2011

By RON HAMMERTON

ONE of only two independent automotive crash test centres in Australia has been saved by local car parts and accessories manufacturer Australian Performance Vehicles (APV) in a $10 million investment.

The Autoliv Crash Test Facility – put on the market by multinational airbag and seatbelt company Autoliv when it wound back its Australian operations recently – will not only continue to provide crash test and safety engineering services to the motor industry and other sectors, such as aero suppliers, but also help APV develop new products for the aftermarket.

The sale of the facility in Campbellfield, near Ford Australia’s assembly plant on Melbourne’s northern fringe, saves the jobs of 12 engineers and technicians and has created at least three more staff positions.

APV, based in nearby Coburg but with another production facility in Queensland, also takes over Autoliv’s aftermarket division, Klippan Safety Products, saving a further 50 jobs of workers in a company that develops and makes safety gear such as aftermarket seat belts – for bus and forklift manufacturers, for example – and safety harnesses for other industries.

The only other independent vehicle crash testing facility is Sydney’s Crashlab, which does the bulk of Australian New Car Assessment Program (ANCAP) tests, among others.

Autoliv Australia, which employed more than 1000 people across its various manufacturing and engineering divisions at its peak about six years ago, moved its original equipment seatbelt manufacturing operation offshore to Thailand late last year and then scaled back its local engineering operation, leaving a staff of only about 12 to liaise with local car manufacturers.

The crash test centre is best known for conducting side-impact crash tests for the ANCAP while also providing crash services to Ford Australia for its local vehicle development programs, including for vehicles such as the Ranger ute. As well, it has also crash-tested the Australian-made Bushmaster military vehicle, and even tests light-plane seats.

Autoliv Australia’s general manager of engineering and marketing, Andrew Baldacchino, has been recruited by APV to head up the former Autoliv crash test facility, renamed APV Engineering and Testing Services.

APV managing director Harry Hickling told GoAuto that the marriage of the two operations would provide synergies to allow the joint company to grow its business in both Australia and export markets.

He said the combined operation had a turnover of about $45 million a year, covering sales to the three Australian motor manufacturers with items such as fuel fillers and suspension parts, aftermarket accessories such as bullbars and trade vehicle fitouts, as well as the safety engineering business.

Mr Hickling said the new-look APV had been restructured into four divisions – APV Automotive Components, APV Safety Products, APV Engineering and Testing Services and APV Vehicle Solutions.

He said the product development side of APV would be consolidated with the safety engineering division.

“The personnel of both APV and Autoliv are genuinely excited with the prospect of strengthening the company and APV’s Melbourne-based activities being based at Campbellfield,” he said.

“For both organisations, there is a real sense of optimism amongst the staff as they can see a strong future in a combined business.”

Mr Hickling said APV would develop a shared corporate services organisation with upgraded IT systems and infrastructure.

He said one of the main focuses of Klippan under APV would be to drive greater business in exports, especially the United States.

“About a third of its revenue is already generated in the US, the UK and Europe, and we are going to put in a lot of effort in the next 12 months to grow the US market place,” he said.

“We have access to the Autoliv seatbelt technology and products, so we have a competitive advantage in the market place.

“We also have some IP agreements with some other suppliers which gives us some unique capability with industrial seatbelts.”

Mr Hickling said the safety engineering division would not only take over the task of testing APV’s own products – previously done in-house at APV- but would also look to expand further into other industrial testing.

“The test centre is basically going to become the centre of our product development and well as providing a range of industrial testing services to industry, from environmental testing, salt spray testing, destructive testing, calibration services etc,” he said.

“So we are centralising all our engineering within the test lab, and the test centre is going to become a much broader supplier of those services across industry.

“It actually has quite a good diversified base already, and that is what we intend to grow.”