AUSTRALIA'S carmakers are breathing more easily, with a troubled key component supplier expected to restart production.
Ford and Holden both faced a shutdown later this week if parts maker Autodom Limited could not kick-start production.
The company supplies all three Australian car producers - Ford, Holden and Toyota - but was placed in voluntary administration at the weekend after closing its doors last week and standing down about 400 workers at plants in both Victoria and South Australia.
Talks involving the administrators, the company, car producers and banks centred on resuming operations as soon as possible and details on just how and when that would occur were expected by Tuesday morning.
Ford said it believed a resolution would be finalised and there would be no disruption to its production schedule, set to resume on Wednesday.
The company had already scheduled a down day on Monday and would again be closed on Tuesday for the Melbourne Cup.
Holden said it expected a solution to be announced on Tuesday.
"It's our belief that an industry-led solution will be announced tomorrow that will see (Autodom company) AI employees back at work and the continuation of critical parts supply to Holden with minimal impact on our own employees or operations," a spokesman said.
Toyota was less affected by Autodom's shutdown after previously indicating it had enough parts to last until Christmas.
The Australian Manufacturing Workers Union (AMWU) was also hopeful of a resolution that would minimise the impact on Australia's car industry.
"The best-case scenario is obviously all our members back at work and the company is able to trade out of this current administration," AMWU Victorian sectary Leigh Diehm said.
The problems with Autodom emerged just a day before Holden's announcement on Friday that it would cut 170 jobs at its assembly plant in Adelaide in response to falling demand for locally produced cars.
The company said the job losses were necessary to ensure its manufacturing operations in Australia remained viable over the next decade in the face of a high Australian dollar and a highly competitive domestic car market.
Official sales figures released on Monday highlighted the problem facing Holden and Ford, with demand for their Australian-produced vehicles falling this year in a total market that rose almost 10 per cent.
The Federal Chamber of Automotive Industries said to the end of October this year sales of Ford's locally built cars were down by 10.1 per cent, while Holden had suffered a 5.6 per cent slide.
Toyota bucked the trend, posting a 13.3 per cent rise in demand for its Camry and Aurion models produced in Melbourne.
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