Abbott Maintain Toyota

Abbott Maintain Toyota

One by one away from the Australian automotive manufacturing . Toyota Motor Corp. factory in Altona , outside Melbourne , into the end of the battle field of automotive manufacturers in the land of kangaroos .

Toyota will be the last manufacturer that produces vehicles in Australia , after General Motors Co. ( GM ) announced plans to close two plants in Australia in 2017 . So far , Toyota counteract the loss of the strong Australian dollar through job cuts . The Japanese company also received government assistance in order to maintain the Altona plant .

However , in a blatant gesture to Prime Minister Tony Abbott on Thursday , Toyota warned that the time for them to end operations in Australia may be arriving .


Five major automotive brand in Australia .
" We will now work closely with suppliers , stakeholders and the government to determine the next steps , " Toyota said in a statement . After that , Toyota will decide whether to continue to operate as the only vehicle manufacturer in the land of kangaroos .

Toyota currently exports 70 % of vehicles made ​​in Australia . The company was worried about GM's decision , which is considered capable of causing a domino effect . The supplier could potentially lose money because half their market dries up . Could be , the result is increased costs in a variety of sectors , ranging from parts to labor . If it were so , the local production of passenger vehicles such as the Toyota Camry and Aurion will be less profitable .

This week , GM will cease production confirms Holden , their units in Australia , in 2017 . GM's decision reflects the rapid shift in the vehicle industry in Australia , a country that is considered the high-cost foreign producers .

GM plant closures will lead to more than 2,900 employees lost their jobs . The impact will be felt in South Australia and Victoria , the manufacturing belt land of kangaroos . In two states , the number of factory workers decreased during the last decades .

The risk of collapse of the auto industry - which once was hailed as a symbol of post-war Australian manufacturing success .

" We want [ the operation ] Toyota continues, " Abbott said . He admitted that he had called the boss of Toyota Australia , Max Yasuda . However , he did not itemize the issues discussed .

Abbott administration received criticism from Parliament , because it does not expressly prevent the closure of the GM factories . In addition , Abbott also considered unable to increase state aid to maintain Holden .

In this case , Toyota's position is somewhat different with Holden . Because, said Abbott , the local production of Toyota's better allocated for export , especially the Middle East .

Toyota's Australian unit profit rose to 220.9 million Australian dollars in the fiscal year to March . Toyota profits reaped from the five-year cost-cutting program . Still, Toyota faces a big challenge in Australia .

One reason for consumers to switch from large passenger vehicles such as the Camry . Instead , they prefer imported SUV . Corolla, Toyota 's best-selling products in Australia , not a local product .

According to Abbott , the government will launch a restructuring package in the coming days . Package is expected to support employees Holden and Toyota . The funds will also be channeled to the sector of research and development , education , and " manufacturing niche . " Program will be held prior to the departure of GM in 2017 .

" We will not let these people fall . Our task now is to build on our fundamental strengths , "said Abbott .(WSJ)