Toyota Motor Corp (TYO:7203) has announced that they will stop making cars in Australia by the end of 2017. Toyota cited high production costs and tough competition. This will lead to 2,500 job losses.
Two months ago, General Motors also said that they would be ending production in Australia by 2017. Ford Motor Company said in May that they would stop Australian production by 2016. Between these three companies, 6,600 manufacturing jobs will be cut. Another factor to the decision was the high Australian dollar.
“We did everything that we could to transform our business,” stated Toyota Australia CEO Max Yasuda. “But the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia.”
Toyota President Akio Toyoda reported the changes at the company’s plant near Melbourne. Toyota cars were built in Australia for the last 50 years. Toyota builds the Camry, Camry Hybrid, and Aurion in Australia. Holden, the Australian arm of GM, received around 1.8 billion Australian dollars in federal government assistance in the last 11 years.