Toyota in AU Bye bye

[Nutsack]

First no more V8 Utes, now Toyota Australia bows out.

 

 

 

Toyota to stop making cars in Australia, follows Ford and Holden

TOYOTA has announced it will cease making cars in Australia in 2017, blaming the cost of manufacturing and the high dollar.

Toyota announced the closure of its Altona plant this afternoon and was briefing workers on the withdrawal. The company has been making cars in Australia since 1963.

Toyota’s move follows the decisions of Ford and Holden to quit manufacturing in Australia by 2016 and 2017 respectively.

It means that from 2017, Australia will not have a local car manufacturing industry.

Toyota’s closure is expected to cost 2500 employees their jobs.

“This decision will change the face of industry in Australia forever,” said Industry Minister Ian Macfarlane, who added that Toyota had made no request to Canberra for financial assistance.

Tony Abbott said the government was focused on ensuring a strong economy and that the number of new jobs outweighed the number of closing jobs.

“Nothing that I say can limit the impact of this devastation and disappointment today (but) there will be better days in the future,’’ the Prime Minister told reporters in Canberra.

Opposition Leader Bill Shorten said seeing Toyota follow Holden and Ford out the door was a disgrace.

“The car industry has died under the Abbott government,’’ he told Network Ten.

Together with the Holden and Ford closures, it will leave tens of thousands of jobs in the balance in the automotive component sector, which employs more than 30,000 workers.

Toyota said it would become a national sales and distribution company.

This means that local manufacturing of the Camry, Camry Hybrid and Aurion vehicles, as well as the production of four cylinder engines, will end by 2017.

Toyota said in a statement: “The decision was not based on any single factor. The market and economic factors contributing to the decision include the unfavourable Australian dollar that makes exports unviable, high costs of manufacturing and low economies of scale for our vehicle production and local supplier base.

Toyota’s statement

“Together with one of the most open and fragmented automotive markets in the world and increased competitiveness due to current and future free trade agreements, it is not viable to continue building cars in Australia.’’

Toyota Australia President and CEO, Max Yasuda, was joined by Toyota Motor Corporation President and CEO, Akio Toyoda, as he made the announcement to employees late this afternoon.

“This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years,’’ Mr Yasuda said.

“We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia.’’

ACTU Secretary Dave Oliver said Tony Abbott had failed to stand up for Australian jobs.

“The Abbott government goaded Holden into leaving, they’ve done absolutely nothing to keep Toyota in this country and as a result Australia will lose up to 50,000 direct skilled jobs, $21 billion will be wiped from the economy and regions will go into recession.

“Mr Abbott promised one million new jobs within five years, that’s around six hundred new jobs every day but since he’s come to office, all we’ve seen are job losses.’’

National AMWU vehicle secretary Dave Smith said the decision would have devastating impact on everything from road transport to shipping and beyond.

“The magnitude of this decision in the community cannot be underestimated,’’ he said.

“We are looking at a potential recession all along the south-eastern seaboard.’’

The Altona plant closure would have a major impact on car component companies, said Victorian AMWU secretary Steve Dargavel.

“Car parts supplying domestic automotive will no longer be happening in Australia after 2017,’’ he told reporters outside Toyota’s Altona plant.

“It is possible that there are some export opportunities if there is government support, if there is political will.

“But there are many, many more thousands of workers tonight that will be reflecting on their future as a consequence of this decision.’’

Victorian Premier Denis Napthine and his deputy Peter Ryan will fly to Canberra to negotiate support for Toyota workers set to lose their jobs.

Dr Napthine said he would seek to have the support package extended to workers in the supply chain who would also be impacted by Toyota’s decision.

Toyota engineers working in Melbourne’s southeastern suburbs will also be worried about their future.

Max Gillard, president of Toyota Technical Center Asia Pacific, said some projects involving Toyota Camry, Camry Hybrid and Aurion models may need to be scaled back or scrapped.

“We will now work with (Toyota) to decide our own future direction,’’ he said.

With AAP

 

 

Source: http://www.theaustralian.com.au/business/news/toyota-to-stop-making-cars-in-australia-follows-ford-and-holden/story-e6frg906-1226822823246

[Vhtfhwlego]

SCM:

Besides losing jobs, people in this industry will likely to suffer as well

- Suppliers (logistics, raw materials)

- Admin (legals & insurance under writers).

- Customers (higher cost for new cars, existing may have spare parts more expensive)

- Property (available warehouse, office & living space), lesser returns due to having more supply.

[LoverofCar]

Why other countries government so stupid to invest in millions just to build factories to produce cars for sale at tens of thousand.....they should really take a cue from our beloved policies makers here....just by selling papers...opps...i mean just electronics transaction that could earn them >$80K per car.....

[Carnoob]

This is globalization of manufacturing, Singapore had been affected long time ago.

 

The government can only delay the process but not stop it. Just image I make car at $1 but sell at $100 why should I make car at $99 then? Company is only interested in profit, they caused 30,000 to lose their jobs in AU but created 30,000 for others in THAI or MYMM or VIET.

 

Unless we have a situation of a single worldwide currency, I will not be surprised manufacturing factories shutting down in developed nations and moved to developing nations.

[Ichibawa]

One day it will be too expensive to make things in even China and companies again have to look for cheaper alternatives. Its already happening with some moving to Myanmar because labour cost is approx 10 times difference.

[Holdenutessv]

No more TRD Supercharged Aurion...

[Penknife]

the downside of a globalised world. Soon, all IT manufacturing companies will move out of SG too.

[Heartbreakid]

Heard that even their Holdens might be soon history too.

[Blackyv]

Why other countries government so stupid to invest in millions just to build factories to produce cars for sale at tens of thousand.....they should really take a cue from our beloved policies makers here....just by selling papers...opps...i mean just electronics transaction that could earn them >$80K per car.....

Don't be naive, if they do the coe trick there, I'm sure whoever approve it would not be in office the next election or even earlier... But here no problem, smelly smelly still got 60% supporters.. Hehehe

[Twich]

Why other countries government so stupid to invest in millions just to build factories to produce cars for sale at tens of thousand.....they should really take a cue from our beloved policies makers here....just by selling papers...opps...i mean just electronics transaction that could earn them >$80K per car.....

That why our Engineering knowledge is so weak compare to South Korea and China. Sooner or later our engineering faculty has to shut down.

[Blackyv]

That why our Engineering knowledge is so weak compare to South Korea and China. Sooner or later our engineering faculty has to shut down.

It will never happen.. You have no idea what would be the impact if engineering industries shut down for good in sg..

[Razer_Blaze]

First no more V8 Utes, now Toyota Australia bows

OH NO. I hope that is not the end of the Toyota Aurion.

Edited February 11, 2014 by Razer_Blaze

[Razer_Blaze]

It is confirmed Holden will shutdown their manufacturing plant and Ford Australia is also doing the same.

 

 

Heard that even their Holdens might be soon history too.