Toyota Motor to stop making cars in Australia

The world’s auto leader, Toyota Motor has announced that the company will stop producing cars in Australia by the end of the year 2017. The Japanese car major has also revealed its intentions to its employees in the factory located in Australia. The government of the country has revealed that the Japanese car maker’s decision to pull out of the nation of Australia will change the country’s car industry forever.

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Toyota Motor employs over 2,000 employees at its manufacturing facility in Australia, all of these jobs will be lost at the time the car giant shuts its facility in the year 2017. The state secretary of the Manufacturing Workers Union in Australia has reportedly told the media that Toyota’s decision to shut down its production in Australia will have wide spread impact on the people as well as the economy of Australia, apart from affecting the country’s car industry badly.

He further said that the car maker’s decision will affect thousands and thousands of workers who are not only employed directly by Toyota but also in and around Victoria as well as the car maker’s supply chain. The added by saying that as it is quality blue collar jobs are getting fewer and the pulling out of Toyota from the country will have real bad consequences.

Steve Dargavel has revealed to a journal that it is not possible for Toyota to continue to make cars in the country of Australia without government support and thus this decision of the company was inevitable.

Another market expert has said that it is indeed very sad that several thousands of workers will lose jobs following Toyota’s withdrawal from the country. However, Toyota’s announcement is not a surprise as there are several reasons working behind it.

Firstly, strong valuation of Australian dollars means that it is cheaper to import vehicles. Secondly, the cost of manufacturing cars on the soil of Australia is much higher than that of the other countries. More importantly, the AMWU has taken the Japanese car major to court. And lastly and most importantly, the Australian consumers themselves don’t buy enough made in Australia cars. Thus, Toyota has nothing to win by staying in Australia but on the contrary a number of disadvantages for any car maker to continue in a country.

A company letter from Toyota has been leaked on Twitter, and this reads that it has been the toughest decision that the company had ever to make. It further said that with extreme sadness it is announcing that Toyota Motor Corp. will stop making cars as well as engines in the country Australia by the end of the year 2017.

The leaked letter further elaborated that the company had worked very hard to strengthen its business in the country, thus it was the toughest decision it had to make. A market analyst said that this news is indeed very sad; Toyota’s walking out of Australia will cause irrecoverable damage and that the Australian auto industry is practically dead.

This post was written by

Pavan Kumar – who has written posts on Toyota Cars India | New Toyota Car | Latest Toyota cars.
I am into the auto blogs field for quite a long time. Living my passion of reviewing cars.

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