The automotive industry itself is one giant engine. And when a single part begins to fail, it could quickly spell disaster for the entire machine. Much like how the crumbling of a major supplier could cripple an entire automaker. Such a situation happened in Australia with Autodom, a supplier to Australian-made Fords, Toyota, and General Motors vehicles.
The company closed two of its Australian plants last week. This situation was significant enough to worry the likes of Ford and GM Holden, which may have been forced into halting production of vehicles in their own plants. Therefore, the two companies took measures to jointly take on Autodom’s debt liabilities to the tune of $6.5 million.
Notably, the Australian government does support its automotive industry every now and then and provides tariff support worth around $2.5 billion ASD, according to Reuters. Despite the aid, it seems that it can’t prevent declining demand for locally built vehicles.