Toyota Australia has confirmed today the long expected news that it will stop building cars in Australia and shift to a distribution and sales model in 2017.
This follows on from announcements over the last year from Holden and Ford that they will be doing the same.
Toyota currently manufacturers Camry and Aurion models in Australia as well as the Camry’s four cylinder engine. The company has indicated they will continue to sell the models, but imported.
In a statement the company said 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”
“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 chief executive officer, Max Yasuda, was joined by Toyota Motor Corporation president and chief executive officer, 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,” Yasuda said.
“While we have been undertaking the enormous task of transforming our business during the past two years, our people have joined us on the same journey, which makes it even more difficult to announce this decision
“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.
“Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts.
“Our focus will now be to work with our employees, suppliers, government and the unions as we transition to a national sales and distribution company. Support services will be available to our employees and we will do everything that we can to minimise the impact of this decision on our employees and suppliers.”
Yasuda said approximately 2,500 employees directly involved with manufacturing will be impacted when the plant stops building cars in 2017.
There will also be an impact on the company’s corporate divisions, which will be studied over the coming months to determine what roles and functions will remain in the future.
Yasuda said that Toyota was also committed to providing support to the industry as it prepares for the end of vehicle manufacturing in Australia.
“We will work with our key stakeholders to determine how to provide the best support to our employees, suppliers and local communities during the coming years,” Yasuda said.
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