Dandenong Suzuki is part of the recently collapsed Auto Group Limited.By Shaun Inguanzo
EMPLOYEES at a Dandenong car yard are in shock after the sudden collapse of their company left them jobless this week, with no certainty they will receive redundancy entitlements.
Auto Group Limited, which owns car yards in Dandenong, Frankston and Cranbourne, this week went into receivership and administration after suffering large financial losses and failing to secure a merger deal with another automobile sales company.
Auto Group owned and operated the Dandenong Suzuki on the Princes Highway, Dandenong, and this week employees told Star they were still recovering from the news their company had folded.
More than 10 jobs will be lost at the car yard, and 500 around Australia.
The employees who spoke to the Star wanted to remain anonymous for fear of retribution.
“It is unfortunate the small people here are copping it and no one is giving a shit about it,” one employee said.
“We don’t know when we will get paid. They’ve taken all the cars and not worried about us.
“Here I am now, without a job.”
Another employee said it was the second time in his car sales career he had been made redundant due to company collapse.
“I thought not again,” he said.
The staff member said about a month before the collapse the car yard was not allowed to replenish stock, which in hindsight was a warning sign for the troubles ahead.
Auto Group had been working to secure a merger with AP Eager, another auto group, but the deal fell through last week when AP Eager announced it had pulled out of the merger due to a “substantial deterioration” in Auto Group’s financial position.
Auto Group’s latest half-yearly report, posted to the Australian Stock Exchange website on 10 February, shows losses of more than $15 million over the six months ending 31 December 2005.
A breakdown of losses includes $1.47 million attributed to “fraudulent and unauthorised transactions”.
Sydney-based PBB has taken over administration of Auto Group while Ferrier Hodgson is the receiver.
PBB spokesperson Ian Carson said employees would be the first to receive benefits from sales of the company’s assets, but if there was not enough money to cover their entitlements, they would be forced to go through the Federal Government’s General Employee Entitlements Redundancy Scheme (GEERS).
“The main assets are cars – if there are still insufficient assets in the company (following their sale) then GEERS will top that up,” he said.
