Toyota to stop Australia production operations by 2017
Toyota Motor Corporation Australia has announced that by the end of 2017, they will be ending all vehicle and engine production operations in the country. This will be the third major car global car manufacturer who has announced to pull out of Australia, after Ford and General Motors.
Toyota Motors cited the effects of a strong Australian dollar and increased labor costs as the main reasons for taking this extreme step to stop production in Australia. Noting a boost in Australian currency has allowed citizens to purchase imported cars more easily thereby having a catastrophic effect on locally manufactured vehicles.
Besides stopping production in Australia, the company also stated that it was considering reducing scale of operations of Toyota Technical Center Asia Pacific Australia Pty. Ltd., Toyota’s development base in the country. The Japanese automakers promised wholehearted support and employment assistance to those workers impacted by this decision. The company will now operate as a sales and distribution company and will continue to serve customers in Australia as they have been doing in the past 50 years.