Joeb427

iTrader: (1)

10 February 2014
Toyota to end car production in Australia by 2017

A Toyota car dealership in Sydney

Toyota is one of the last remaining carmakers in Australia


Toyota is to end its vehicle and engine production in Australia by the end of 2017, effectively marking the end of the country's car making industry.

The company said it might scale down the operations of its development and technical centre in Australia as well.

Last year, Ford and General Motors' Holden unit also announced plans to stop producing cars in Australia.

About 2,500 jobs are set to be lost as a result of Toyota's decision, which it attributed to high manufacturing costs.

"We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort," said Toyota president Akio Toyoda.

"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 Japanese auto giant, which first began making cars in Australia in 1963, said it "intends to provide the best support it can, including employment assistance" to those affected by the decision.

Vivek Vaidya, an automotive analyst at consultancy Frost & Sullivan, said he was not surprised by Toyota's decision.

"Toyota was the last producer in Australia after exit of Mitsubishi, Ford and Holden," he said. "Labour cost in Australia is too high to be price competitive in production."

Mr Vaidya also said rival car-producing countries such as Thailand and the US were more attractive in terms of manufacturing costs.


http://www.bbc.co.uk/news/business-26114894

Hoovey689

iTrader: (16)

ouch to the Aussies

yowps3

I'm so not surprised.

It also doesn't help when the government policies just do not support any local manufacturing. Let's see a one way trade deal with Thailand and pretty much every other nation we have a FTA with, low tariffs on imports and a overvalued dollar makes manufacturing unviable here.

spwolf

well GM leaving meant that part industry could also not compete... then Unions said that they wont lower their demands, and voila here is the result.

I wonder what will union leaders do now?

spwolf

Since 2017 is the last year for Australia and they produce Camry, it will likely be the time when all-new Camry is introduced.

yowps3

Toyota wamted to negotiate with the employees but the corrupt unions blocked them off.

Look at all the benefits those Toyota workers get;

AMONG THE 27 CHANGES TO EBA THAT TOYOTA WANTS:

-Cut Christmas shutdown from 21 days to eight days

-Removal of annual leave loading

-Cut requirement for workers who don't get 30-minute unpaid meal break within six hours of starting to be paid time-and-a-half until they receive a meal break

-Medical certificates mandatory for sick leave

-Cut minimum notice period from two months to one when Toyota needs to change rostered day off

-Require workers be available for at least 20 hours overtime each month

-Reduce paid training days for union officials from 10 a year to five

-Cut a four-hour paid leave allowance to donate blood

-Reduce Sunday overtime rate of pay from double-time-and-a-half to double time

-Last shift prior to Christmas shutdown extended from five hours to a full eight

-Removal of respiratory allowance paid to paint shop employees who wear air fed respiratory equipment

-Cut a "dirt money allowance" paid to employees performing work that is "unusually dirty or offensive"

-Removal of payments made to employees who travel for work outside of ordinary work hours

Those workers are spoiled brats.