Toyota halting production in Australia by end of 2017; will mark the end of major car manufacturing there
Toyota Motor Corporation (TMC) and Toyota Motor Corporation Australia Ltd. (TMCA), its production and sales subsidiary in Australia, will end Toyota vehicle and engine production in Australia by the end of 2017. The announcement marks the coming end of vehicle and engine manufacturing by all of the majors present in the country: Ford, GM and Toyota.
Toyota was the final of the three to announce an end to their production operations. Ford announced in May 2013 that it would halt its production in the country, followed by GM’s announcement in December 2013 that it would discontinue vehicle and engine manufacturing and significantly reduce its engineering operations in Australia by the end of 2017. (Earlier post.)
Furthermore, Toyota is considering reducing the scale of the operations of Toyota Technical Center Asia Pacific Australia Pty. Ltd. (TTCAP-AU), Toyota’s development base in Australia with operations related to Toyota production in Australia.
The Sydney Morning Herald characterized Toyota’s decision as “a massive blow for the economies of Victoria and South Australia.”
Toyota said it will work together with employees, business partners, government, local communities and others regarding specific measures. Particularly for the TMCA and TTCAP-AU employees who will be impacted by this decision, Toyota said it intends to provide the best support it can, including employment assistance.
We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort. 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.—TMC President Akio Toyoda