Holden and Toyota have both confirmed their commitment to the Australian automotive manufacturing industry, following the announcement that Ford Australia will cease local production in 2016.
“Despite Ford’s announcement to end local manufacturing we believe the industry can survive in Australia and has already adjusted in large part – given Ford’s relatively low production volumes,” says Holden managing director Mike Devereux.
“Holden set out a 10-year manufacturing plan that was agreed with the Australian government in 2012 based on economic and market conditions at that time.
“That plan would see Holden inject $1 billion in this country and secure production of two all-new global vehicles, all the way up to 2022.”
Toyota too expressed their disappointment in the announcement, saying that the current environment is extremely tough, but automotive production remained an important part of the Australian economy.
“Manufacturing is an integral part of Toyota’s Australian business,” says Toyota. “The company is now 15 months into a five-year transformation project in response to external challenges, including the high Australian dollar, intense market competition, and the high cost of materials.
“The objective of the project is to lay a solid foundation for future growth in Australia. The company will consider the impact of this decision on its local supply network and will continue to work closely with its suppliers.”
In the wake of the announcement the Federal and Victorian governments have pledged to contribute $39 million to support the northern Melbourne and Geelong regions affected by Ford’s decision to pull out of manufacturing.
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