Toyota Australia to stop local manufacturing in 2017

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Toyota Australia has just announced that it will stop all its local manufacturing operations by the end of 2017, and become a sales and distribution company. Its production plant in Altona, Victoria currently makes the Camry, Camry Hybrid and Aurion models, as well as a line of four-cylinder engines – all of which, will cease by end-2017.

Why? Plenty of reasons were given, among which are the unfavourable Australian dollar that makes exports unviable, high costs of manufacturing, low economies of scale and increased competitiveness within the region due to current and future Free Trade Agreements.

“The reality is that there are too many factors beyond our control that make it unviable to build cars in Australia. Our manufacturing operations have continued to be loss making despite our best efforts,” said Toyota Australia president and CEO, Max Yasuda, alongside Toyota Motor Corporation president and CEO, Akio Toyoda.

Approximately 2,500 employees directly involved with manufacturing will be impacted when the plant stops building cars in 2017. This announcement by Toyota Australia comes within a year of Ford Australia making public its intention to shut down its own local manufacturing plants by October 2016.

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Hafriz Shah

Preferring to drive cars rather than desks, Hafriz Shah ditched his suit and tie to join the ranks of Malaysia’s motoring hacks. A car’s technical brilliance is completely lost on him, appreciating character-making quirks more. When not writing this ego trip of a bio, he’s usually off driving about aimlessly, preferably in a car with the right combination of three foot pedals and six gears.

 

Comments

  • taiko on Feb 11, 2014 at 9:50 am

    come and invest in boleh land.should be no peoblem.will sustain with high profit until the doomsday.still wondering why there are some people book the previa with the unbelievable price.oh..this is what we call bolehland. even me also use the recon japs mpv with ubv price.CHEERS

    Like or Dislike: Thumb up 5 Thumb down 8
    • Majuperak on Feb 11, 2014 at 10:49 am

      Recond Jap Estima, Alphard, Veifire from grey dealers earning so much from the APs….. all the recond MPV with tampered mileage and some of this vans are used as casket carriers in Japan and also lovers make out vans …. LOL

      Like or Dislike: Thumb up 9 Thumb down 0
    • Besi Buruk on Feb 11, 2014 at 11:40 am

      What are you trying to say? – ‘Chap Fun, Mixed Rice or Nasi Campur’

      Like or Dislike: Thumb up 1 Thumb down 2
    • AutoFrenz on Feb 11, 2014 at 11:52 am

      See in many ways Malaysia is better than Australia…but still all those jelly beans will criticize MALAYsia as if they still live in that particular country…this immigrant mentality should stop if not they will forever be known as immigrants with no sense of respect towards the country they currently live in…its so sad…sad…

      Like or Dislike: Thumb up 11 Thumb down 10
      • I believe you prefer your kids to work in a factory then. You see, the Australian economy is not manufacturing based, they are service based. All manufacturing jobs will eventually go to third world countries where wages are low.

        Like or Dislike: Thumb up 8 Thumb down 3
        • AutoFrenz on Feb 11, 2014 at 3:08 pm

          They are all in top management position even though they work in kilang besi…any problem with that ah kau…

          Like or Dislike: Thumb up 3 Thumb down 9
          • See? That’s the prob, if they are in the top management, they’d probably sitting thousands of miles away from that factory in HQ, or maybe few hundred of kilos away from the factory in a regional office. Your point?

            Like or Dislike: Thumb up 5 Thumb down 4
        • ha..y cannot? his kid maybe become engineer, R&D researcher, plant manager etc…u think work in factory oni general worker?..lame

          Like or Dislike: Thumb up 4 Thumb down 4
      • AUSNSW on Feb 11, 2014 at 4:45 pm

        Malaysia is facing serious brain drain problem….Hence,Australia is better in many field because our talents are heading there.Malaysia even worse than Taiwan.

        Like or Dislike: Thumb up 4 Thumb down 6
    • if toyota says they cannot manufacture in australia, not other makes can. period.

      australia is just not a manufacturing country. labor expensive like hell. just stick to your services industry.

      Like or Dislike: Thumb up 9 Thumb down 0
      • luqae on Feb 12, 2014 at 2:51 pm

        not to mention their union and labor law are to strong that make productivity very low but with very high cost

        Like or Dislike: Thumb up 3 Thumb down 0
      • Sam Loo on Feb 16, 2014 at 4:43 pm

        Mitsubishi closed down its Adelaide plant a few years back.

        GM Holden and Ford announced that they will also cease their Oz production plants in 2016/2017

        It is the end of the Oz auto manufacturing industry

        Like or Dislike: Thumb up 1 Thumb down 0
  • toyoda will open toyota plant in malaysia?

    Like or Dislike: Thumb up 3 Thumb down 1
    • They got it here under UMW lah.

      But to move it here for bigger factory maybe illogical not due to smaller volume sense, but rather too many Kroniputera vendors to be forced feed easy money later on.

      Australia’s closure reasons are valid and economic cost wise, unlike here it is likely more on chronic cronyism, corruption cost that drives away investors.

      Like or Dislike: Thumb up 4 Thumb down 3
      • those up to 80% kroniputra u know who..i can not say if i say i will be brand rasis…but u just brand those people as corrupt people…u say corrupt there..corrupt here..do u have proof to back wat u said?..u oso corrupt fr wat i feel..

        Like or Dislike: Thumb up 5 Thumb down 3
  • sudonano on Feb 11, 2014 at 10:19 am

    So now, where will Toyota Malaysia get the engines from?

    Cause if I am not mistaken they used to import them from Australia.

    Oh well I guess the Australian market will start to get the Thai made Camry then.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Toyota Malaysia get their engine from Thai and Indo

      Like or Dislike: Thumb up 2 Thumb down 0
      • I don’t think from Thai or Indo coz plant in Thai & Indo just a assembly plant similar to Proton Tg Malim, Honda Melaka, BMW Kedah & Merc Gambang… Assembly Plant did’t make any or produce engine..

        Like or Dislike: Thumb up 1 Thumb down 0
        • TOYOTA MAN on Feb 11, 2014 at 5:48 pm

          Yup, in thai..assmebly plant they have 3 , engine plant they have 2 which called ( Siam toyota motor… google if you dont know..

          Like or Dislike: Thumb up 2 Thumb down 0
          • Just google, everything talk/said about assembly plant either car or engine.. Making & Assemble are to diff thing.. I strongly believe the engine parts (engine block, head & etc) still make in Japan but they assemble either in Thai or Indo…

            Even motorcycle engine part made in china either Yamaha or Honda, Thai plant just assemble it…

            Like or Dislike: Thumb up 0 Thumb down 0
  • azermalak on Feb 11, 2014 at 10:22 am

    The lost of Holden and now Toyota is not about losing car manufacturing in Australia. It is about Blue Collar Workers having less job and White Collar Workers is getting bigger. Lesson here is for Malaysian to make sure their kid have good education to become at least White Collar job as this country progressing the opportunity for Blue Collar job is getting lesser and lesser.

    Like or Dislike: Thumb up 1 Thumb down 0
    • So far closing down announcement has been made:
      1) Holden in Dec 2013, closing by end 2017
      2) Ford in Feb 2014, closing by end 2016
      3) Toyota in Feb 2014, closing by end 2017

      Who’s next?

      Like or Dislike: Thumb up 3 Thumb down 0
    • samloojunior on Feb 11, 2014 at 5:36 pm

      well said, it has nothing to do with mining as main revenue income, but the blue collars losing their jobs

      Like or Dislike: Thumb up 0 Thumb down 0
  • Lemer on Feb 11, 2014 at 10:39 am

    Lucky Malaysia, has Proton if economy is not in favor like australia right now, proton will always stay. Toyota, Honda, Mazda car assembly like in Australia, Thailand, Indonesia they always could pull out and move thier company somewhere else.

    Like or Dislike: Thumb up 5 Thumb down 20
    • farizY on Feb 11, 2014 at 10:57 am

      Which is weird, Proton suffered losses every single year (despite rising in sales volume), yet they remained. Sales volume go up, but not untung? Very mysterious indeed.

      Like or Dislike: Thumb up 19 Thumb down 1
    • Low Budget on Feb 11, 2014 at 11:52 am

      Proton manage to float because the Gomen is supplying them the life buoy, if the life buoy is taken away Proton will sink no doubt.

      Like or Dislike: Thumb up 13 Thumb down 2
      • Lemer on Feb 11, 2014 at 12:09 pm

        The fact right now Toyota is closing in Australia.

        Like or Dislike: Thumb up 5 Thumb down 1
      • Holden is same like p1..the gov help to make it survive..the Aussie govt end helping holden since this company can not be help anymore..over there aussie begging the govt to save holden..here people begging the govt to close p1

        Like or Dislike: Thumb up 1 Thumb down 3
        • Lemer on Feb 11, 2014 at 4:02 pm

          When you said people here actually only ‘certain’ people though, majority prefer local brand, if not why p1 and p2 always manage to be number 1 and number 2. And Holden i believe more like Perodua.

          Like or Dislike: Thumb up 1 Thumb down 21
          • AUSNSW on Feb 11, 2014 at 4:50 pm

            Holden can’t win toyota also in unit sales.

            Like or Dislike: Thumb up 2 Thumb down 0
  • farizY on Feb 11, 2014 at 10:59 am

    The red Camry there, isn’t that Aurion? Looks pretty good. They should put that bodykits instead of the ones we have here in Malaysia.

    Like or Dislike: Thumb up 1 Thumb down 0
    • theanswer on Feb 11, 2014 at 12:37 pm

      our camry is called aurion..the red one is sportivo package. but the rest still same uncle look as our camry. they used to have aurion trd.

      Like or Dislike: Thumb up 1 Thumb down 0
  • farghmee on Feb 11, 2014 at 10:59 am

    eventually this will happen to MY.

    :fortune-telling mode:

    Like or Dislike: Thumb up 1 Thumb down 1
    • Low Budget on Feb 11, 2014 at 11:57 am

      Proton will close only if economy of Malaysia turns very sour in the next few years and the Gomen is running out of cash. As it is there are still some growth in our economy, therefore closing of Proton won’t happen in the immediate future.

      Like or Dislike: Thumb up 2 Thumb down 0
  • Wiralution on Feb 11, 2014 at 11:45 am

    Does all Australian Toyota have sunroof as standard?

    Like or Dislike: Thumb up 0 Thumb down 0
  • Heard before this Toyota Australia is given a job to design the new Fortuner and Hilux. Now it will close its manufacturing operation.

    Like or Dislike: Thumb up 0 Thumb down 0
    • TOYOTA MAN on Feb 11, 2014 at 5:51 pm

      Fortuner and Hilux will launch somewhere in 2016..So sempat la…

      Like or Dislike: Thumb up 0 Thumb down 0
  • rythmofcolour on Feb 11, 2014 at 12:16 pm

    **will not be close down

    Like or Dislike: Thumb up 0 Thumb down 0
  • if UMW continue to barebone the spec and stripped off those safety equipments and up the price unnecessarily, eventually their thailand plants will end the production to malaysia soon, good luck UMW!

    Like or Dislike: Thumb up 3 Thumb down 0
    • luqae on Feb 12, 2014 at 2:58 pm

      its unlikely because TMC is the one who ultimately control everything, and the absence of all of the spec and safety equipment are all approved by TMC based on market demand, theres lack of awareness and demand (based on survey done by UMWT) by the local market thats why their excluded the features.

      Like or Dislike: Thumb up 0 Thumb down 0
  • najib on Feb 11, 2014 at 2:15 pm

    come to malaysia. cheap labour cost, high car price. malaysia boleh!

    Like or Dislike: Thumb up 1 Thumb down 0
    • high car price does not effect car for export

      Like or Dislike: Thumb up 1 Thumb down 0
    • TOYOTA MAN on Feb 11, 2014 at 5:54 pm

      They will expand to Indonesia due to politikus issue in thai..

      Like or Dislike: Thumb up 1 Thumb down 0
      • indo corruption much much higher than boleh

        Like or Dislike: Thumb up 2 Thumb down 0
        • Ct Hawa on Feb 12, 2014 at 1:57 pm

          But workforce is better than us..turnover also very low compared to bolehland..now they in progress to open 3th plant…all money goes to corruption will bear by end user.. i think toyota smart enough to facing all kind of corruption..

          Like or Dislike: Thumb up 1 Thumb down 0
  • Jebonr on Feb 11, 2014 at 2:25 pm

    I guess this is normal business strategy.

    Like or Dislike: Thumb up 0 Thumb down 0
 

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