Toyota halts production Down Under
TOYOTA has joined Ford and General Motors in announcing it will cease to manufacture cars in Australia by 2017. It blames high costs, a small domestic market and the strong Australian dollar for the decision.
The Japanese company has been building cars in Australia since 1963 but has been losing money there in recent years.
In 2011 Toyota Australia announced a $13.2m loss after tax for the year to March 2011. At that time the president and CEO, Max Yasuda, said it needed to recover from the effect of Japan’s earthquake and tsunami disaster. Last week he said that said there was no single reason for the closure. “We did everything that we could to transform our business but the reality is that there are too many factors beyond our control.”
In 2012 Toyota Australia cut 350 jobs and subsequently became embroiled in legal action with the unions. Now it is expected that some 2,500 manufacturing employees will be directly affected with thousands more in the supply chain also being laid off.
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