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.
Toyota Motor Corporation commenced business operations in Australia in the early 60s. Ever since then it has increased in popularity and still produces the top selling Camry sedan in the country. The decision to pull out has caused much concern and sadness among employees, business partners, the government of the country and locals.
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.