FMP yesterday confirmed the job cuts, saying the move had to be made to ensure the firm remained globally competitive.

Managing director Graeme Dixon said the decision to cut the five jobs from the commercial vehicles manufacturing plant was unfortunate.

"To put it into perspective, it's five people out of 376 and the commercial vehicles segment accounts for less than five per cent of our production and sales revenue,'' he said.

"We have carried out some extensive studies in this area and just don't believe it's viable to maintain a presence in that market.''

Mr Dixon said the decision had not been taken lightly.

"Letting people go from the organisation is not a nice thing to do and so we did undertake very extensive reviews,'' he said.

"We looked to see if they could be placed elsewhere, but because of low demand across all product lines, driven by the global recession, we couldn't find a spot for them.

"We're obviously giving them all the support we can to find new jobs.''

He said there was increasing pressure on the automotive components industry.

A high cost base for Australian manufacturers and strong import competition were both reasons for the move, he said.

"With the high Australian dollar at the moment, it makes import competition extremely competitive and it's very difficult to compete on a price and costs basis.''

Mr Dixon could not guarantee the future of the industry or the business.

"All we can do is continue to review the market, our position in the market, our product range and we'll adjust the business to meet the needs of the market.''

He said he was hoping for a level of support within the findings of an automotive industry review currently being headed by former Victorian Premier Steve Bracks.