Car production is not at risk: Holden

Irons Engineering in Adelaide, which supplies precision components for use in vehicle transmissions, seats and shock absorbers, has gone into administration.

And the Australian Workers' Union (AWU) said Irons was likely to be placed in liquidation, with the possible loss of all 41 jobs, depending on the outcome of a last minute offer to buy the company.

AWU organiser Joe Kane said an offer from a Melbourne group was put on the table earlier this week.

Whether or not it proved acceptable was still subject to negotiation.

But he said whatever the outcome, about half the jobs at Irons were likely to be lost.

"The creditors, of which the employees are a major percentage, have given the administrator another fortnight to try and salvage a sale in some way, shape or form," Mr Kane said.

"I don't know why we did that, but anyway, it's better than nothing.

"So the guys are still employed, they are still being paid and production is still going.

"At the moment everything is okay but we came within a hair's breadth of the company just closing down."

A Holden spokeswoman said the company was still involved in discussions about the future of Irons.

There was no immediate threat to car production at the Elizabeth assembly operations in Adelaide.

"We have enough parts so as not to delay production," she said.

"But obviously we're going to have to make some decisions going forward. It's early days yet."

The spokeswoman said finding an alternative supplier was just one of a number of options being considered.

Earlier this year, Holden and Ford were forced to underwrite a multi-million-dollar deal to rescue another parts supplier, Ajax Engineered Fasteners, when it got into financial trouble.

Source: AAP 2006