Dominion Automotive in receivership
UXBRIDGE, Ont. (Jan. 7) — Dominion Automotive, once Canada’s largest manufacturer of lighting, safety, and electrical systems for heavy-duty trucks and trailers, is bankrupt and has ceased operations at its headquarters and plant in Uxbridge, Ont.
The 35-year-old company filed for bankruptcy protection in an Ontario court on Dec. 30, leaving nearly 185 employees out of a job. Workers were informed by Dominion president Cle Smith on Jan. 5 as they returned from the holiday break.
Grant Thornton Ltd. of Toronto, the appointed receiver of the property on behalf of the Canadian Imperial Bank of Commerce, is expected to look for a buyer for the entire business before selling individual assets.
Last year, Dominion announced that it wanted to become a low-cost producer. It trimmed staff, moved production of lighting products to a plant in Juarez, Mexico, and upgraded automation equipment at its Uxbridge assembly line.
“Dominion made a good, popular product — their part numbers became embedded in people’s minds and equipment over the years,” said Al Tucker, general manager of the Canadian Transportation Equipment Association in St.Thomas, Ont. “They had made some tough decisions recently to improve their prospects and I really thought they were on the right path. The bank, I guess, did not.”
Tucker hopes another manufacturer will step forward to continue the Dominion product line.
“When somebody is on the ropes, people just wait until the other shoe falls before coming in,” he added. “Now’s the time. There’s a lot of value in that Dominion name. I hope it goes on.”
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