Nationwide vehicle transporter goes into voluntary administration

vehicle transporter

Australia’s largest vehicle transporter Autocare Services has gone into voluntary administration, citing volatile market conditions, declining vehicle volumes and increasing operating costs as reasons.

Big Rigs has asked parent company LINX Cargo Care Group for more details on what today’s news means for the many truckies with Autocare, and exactly how they are impacted.

An earlier report said Autocare Services receives and processes more than half of the one million cars that are sent to Australia by OEMs and delivers them to the franchise dealers on a fleet of approximately 300 trucks.

In today’s media statement, LINX Cargo Care Group’s Chief Executive Officer, Anthony Jones, said Autocare Services continues to be significantly impacted by the vehicle logistics market decline across the business’ portfolio of processing, storage and transport services.

Despite slight increases in sales in November and December 2020, Australia’s new vehicle market continues to remain depressed. Since a record year in 2017, there has been a sustained decline driven by weakening economic conditions, shifting market and supply chain requirements and changing consumer preferences.

This decline along with the impacts of COVID-19 has seen a 22.9 per cent fall in new car sales since 2017. In 2020 alone, results were down 13.7 per cent on calendar year 2019.

“Autocare Services has been working closely with its customers, and the wider supply chain, to evolve the business in alignment with the changing market conditions however, the material movement and volatility has been heightened by the ongoing COVID-19 pandemic,” said Jones.

“Voluntary administration can provide Autocare Services with a pathway for the tough, but necessary, change it needs for the evolution of its business model to keep delivering services valued by customers today, and into the future, to the Australian automotive industry.”

Jones said LINX Cargo Care Group values Autocare Services as part of its wider Group portfolio and is hopeful for the future of the business after restructuring.

The statement stressed that Autocare Services intends to continue operating and servicing its many customers across Australia during the administration process under administrator management.

“The appointment of an administrator is an unsettling time for our people, customers and stakeholders, for both Autocare Services and LINX Cargo Care Group, however we are confident in this process as the best chance for a profitable and sustainable Autocare Services on the other side,” said Jones.

Autocare Services has been a major player in Australia’s automotive industry for 60 years, with almost 600 employees currently working at 20 sites across Australia.

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