CMI Industries workers in West Footscray are in a state of shock after learning 52 jobs will go as a result of receivers McGrathNicol failing to find a buyer for the stricken business.
CMI makes parts including seatbelt restraints, airbags and suspension components used in
Ford cars, and it supplies parts to Toyota and Holden.
The company went into administration in April, forcing Ford to temporarily stand down workers due to a parts shortfall.
The West Footscray workers will finish up by February and join a further 67 workers to be cut from the auto-parts manufacturer's Campbellfield facility in October.
The news comes only a week after Ford announced 220 jobs would go from its Broadmeadows plant by November.
Australian Manufacturing Workers Union secretary Leigh Diehm said CMI workers were still coming to terms with the job losses.
"Members are working through the process. They're still in a state of shock," he said.
Mr Diehm says governments must take some of the blame for failing to support the industry when stocking their vehicle fleets.
"What governments should be doing is have a good hard look at their own policies," he said.
"Governments and councils only purchase about 33 per cent of Australian made vehicles for their fleets. That's down 66 per cent from 10 years ago. Why isn't it 100per cent? Governments around the country are the biggest registered users of fleet vehicles."
Melbourne's western suburbs have been rocked with a number of manufacturing job losses in the past year, including 350 redundancies at Altona's Toyota plant, 150 jobs lost at 1st Fleet in Sunshine and 500 lay-offs at Qantas.
Maribyrnong recorded more than 500 extra unemployed residents in the 12 months to March.
The jobless queue has blown out to 3000 people, sending unemployment soaring to 7.8per cent.
More than 2500 people are now out of work in Hobsons Bay.