Teson Trims to close doors
BY TERRY MARTIN | 30th Sep 2008
Despite reports last month that more than a dozen interested parties had expressed interest in buying the troubled company, the administrators were unable to secure a deal after Teson went into voluntary administration three weeks ago, owing $2 million to creditors.
The Victorian government has pledged to assist workers with retraining programs.
Meanwhile, the National Union of Workers Victorian secretary Antony Thow told the AAP news agency on Monday that the federal government had “one last chance” to save the embattled automotive components industry, arguing that parts suppliers such as Teson were the victims of uncontracted cost write-downs forced upon them by local car manufacturers.
According to Mr Thow, Toyota paid Teson $12 per unit for wheel covers at the beginning of its contract, but that had since been eroded to $9.03 – despite a 12 per cent hike in the cost of raw materials. He also said that Toyota was pushing for $6.68.
“How could this local family business plan and run its operations in the face of rising costs, a fluctuating Australian dollar and predatory pricing by its key customers?” he told AAP.
“I’ve had CEOs of several major component suppliers tell me in recent months that added to the already tough business conditions, car producers demanding cheaper prices midway through a contract is driving them to the wall.”