ROCHERLEA-based ACL Bearing Company will finalise by September its 14-point plan to boost the company's performance, after the Federal Government yesterday stepped in to broker an industry deal to save the car parts maker. The Government agreed to increase its $4 million grant under the Automotive Industry Structural Adjustment Program to $7 million. It follows failed emergency talks between the State Government and ACL over a $4 million loan that hinged on directors' personal guarantees. The Commonwealth's funds would free-up finances ACL had planned to spend on upgrades so it can repay a $3 million loan to GE Finance due today. As part of the new deal, Ford and Toyota have agreed to a confidential package of support. ACL, which employs about 280 people in Launceston, will use the federal funds to implement a three-year restructure. Innovation Minister Senator Kim Carr said ACL would have to meet agreed milestones as part of the grant. "There are strict conditions, being payments made against milestones," Senator Carr said. The first, a breakdown of the plan for each of the 14 steps in the restructure, is due for submission to the Federal Government by September. ACL's plans would cost $14 million - $7 million from the Commonwealth and $7 million from the company, which it says would be found through savings the initial federal- funded upgrades would bring. The plan does not involve staff cuts. Instead, it centres around a new automated engine bearing production line, a powder metallurgy production unit, robot-assisted production and assembly equipment, computer controlled tool-making equipment for the new green car market. Senator Kim Carr said that ACL, which has recorded losses of $11.5 million and $8.7 million in the past two financial years, was vital to the Australian automotive industry. "No automotive company operates in isolation, everyone depends on everyone else," Senator Carr said. "ACL is a vital part of the supply chain. "Australia is one of the few countries in the world that can create a car from scratch and this is an advantage we should never give up without a fight." Senator Carr said Ford, Toyota and Holden would have ground to a halt within days without the parts provided by ACL, at the cost of about 5000 jobs nationally. ACL chairman Ivan James said the plan would secure the company's future. "Security comes out of success in business when we are viable in the long term so this is fantastic news," Mr James said. Bass Labor MHR Jodie Campbell said the news was wonderful for workers, who have been under pressure for more than 12 months, but in particular since Christmas when the State Government rejected ACL's initial $10 million loan application. "They can go home tonight and tell their families that they do have a future and their jobs are safe," Ms Campbell said. Meanwhile, workers are in the process of deciding if they would continue their four-day working week until later this year - the move deemed essential as the company battles a 30 per cent reduction in orders. Mr James has predicted an improvement in orders before the end of the year. "Our expectation is another quarter of tough markets for us to endure and there is a fine balance with the impact and the value of the Australian dollar," Mr James said. "I believe we will start to see recovery in the last quarter of 2009."