OE automotive parts body folds

The Federation of Automotive Products Manufacturers has officially announced its closure – after 57 years representing original equipment parts suppliers to the local vehicle manufacturing industry.

Since Ford – followed by Holden and Toyota – announced plans to end vehicle manufacturing operations in Australia, the writing had been on the wall for the FAPM.

But the industry body is closing on a high note – owing no money to creditors. Any residual issues to be resolved on behalf of parts manufacturers continuing to operate in Australia will be handled henceforth by the VACC. Some companies will migrate to supplying parts to the aftermarket industry, which would place them in the capable hands of the Australian Automotive Aftermarket Association (AAAA). Members like Robert Bosch or wheel manufacturer ROH (pictured) are already well immersed in the aftermarket side of the industry.

"FAPM was founded in 1958 and currently consists of around 80 member companies, who will be transitioning over to VACC and, as Special Interest Group members, VACC will support them as we do all of our 5000-plus business-owner members," VACC executive director Geoff Gwilym was quoted saying in a press release.

"It is important to remember that although large scale vehicle manufacturing will be closing down in around two years, there are still a lot of very good reasons to retain this incredible capability that we have here in Australia. There will be other opportunities for our manufacturers and we need to be prepared for those opportunities. VACC will be able to help in this respect."

The FAPM has seen its member base dwindle significantly in recent decades, as vehicle manufacturers have begun sourcing more OE parts from abroad. Mitsubishi's closure of Tonsley Park in 2008 /news/2008/large-passenger/mitsubishi/380/last-380-rolls-off-the-line-6209 was the snowball that started the avalanche.

A gradual move away from the traditional Aussie large car for the family damaged Ford's sustainability in the aftermath of the Global Financial Crisis – which saw the Australian dollar overvalued and priced the local product out of competition. Once Ford announced it would close its production plants at Campbellfield and Geelong, reduced economies of scale threatened to raise the price of local parts beyond a sustainable level for the two remaining manufacturers, Holden and Toyota.

"Automotive manufacturing will continue to be important in this country. Australian companies still build automotive components for niche manufacturers like Tom Car, as well as defence vehicles, such as the Thales-built Hawkei. Australia still has a high skill level in manufacturing and design; we are still one of only 13 countries that can design and build vehicles in one place. We have a proud history," says Gwilym.

"The VACC Board has committed to FAPM and its members. This is keeping the family together. VACC will be supplying critical services to FAPM members. As industry goes through this transition no doubt FAPM members will rely heavily on VACC's IR and technical services and other services to help transition their businesses into other areas of automotive, or into other industries."