Ford’s decision to end Australia manufacturing has triggered a chain reaction on the continent, with GM doing the same and now Toyota announcing a similar move.
Confirming the Australian manufacturing sector’s worst fears, Toyota Motor Corporation Australia (TMCA) today announced it decided to end vehicle and engine production in the country by the end of 2017.
It is not an unexpected decision, as shortly after GM announced it will stop making cars in Australia, Toyota warned that the exit put “unprecedented pressure” on its local operations.
“We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort,” said Toyota Motor Corporation president Akio Toyota. “However, various negative factors such as an extremely competitive market and a strong Australian dollar, together with forecasts of a reduction in the total scale of vehicle production in Australia, have forced us to make this painful decision,” the executive explained.
Toyota said it will work together with employees, business partners, government, local communities and others regarding specific measures. The company also said it is considering reducing the scale of the operations of Toyota Technical Center Asia Pacific Australia Pty. Ltd. (TTCAP-AU), the carmaker’s development base in Australia with operations related to Toyota production in the country.
The Japanese automaker promised the best support it can offer, including employment assistance, to the TMCA and TTCAP-AU employees impacted by this decision.
“TMCA will change into a sales and distribution company, but Toyota’s commitment to continue to provide great cars and services to the Australian people – something we have done for 50 years and will do for the next 50 years – will not change. Toyota will work hard to continue its contribution to Australia,” Toyoda added.
Australia was the first country to build Toyota vehicles outside Japan. In 1963, Toyota started manufacturing the Tiara and by 2013 the company celebrated the 3 millionth car built in the country.
By Dan Mihalascu
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