(MENAFN) Australian units of Ford Motor Co and General Motors Co (GM) agreed to underwrite USD6.5 million debt for auto parts supplier Autodom Ltd to evade shutdown, Reuters reported.
Recently, Autodom, a supplier of parts to local units of Ford, Toyota Motor Co and GM, shut down its plants in two Australian cities.
The deal, under which Ford Australia and GM Holden will almost share the Autodom's debt liability, was finalized with the appointment of receivers McGrathNicol Pty Ltd, allowing Autodom to continue operations.
Australia's automotive industry, based mainly in southern Victoria and South Australia states, is a major contributor to Australia's manufacturing base with three manufacturers exporting USD3.3 billion worth of vehicles a year with the aid of around 160 component makers.
Australian automotive industry has struggled to maintain manufacturing jobs, despite the government's USD2.6 billion annually in subsidies and tariff support. The Australian arm of Japan's Mitsubishi Motors Corp shut down its car plants in 2008.