The Australian automobile manufacturing industry is coming to an end by the year 2017 as its last manufacturer, Toyota, announced its withdrawal from the country. The Australian automobile manufacturing market has struggled during its 50 year history to bring profits to companies who decide to build their cars in Australia.
Toyota Australia is following in the footsteps ofFord and General Motor Holden, both automobile giants who were unable to continue making their cars in Australia and pulled out of the manufacturing market there during the last year. Toyota�s Australian branch CEO and President MaxYasuda stated that many factors went into their decision to pull out of the Australian market, most of which were related to the company�s inability to turn a profit on the manufacturing side of the Australian operations. Approximately 2,500 employees of Toyota Australia are likely going to lose their jobs and, after review, may be followed by corporate and higher up positions once the dust has settled and inquiries into Toyota Australia�s business practices can be conducted.
CEO Yasuda also mentioned other factors that prompted Toyota�s exit from Australia including the unfavorable Australian dollar and exchange rates, high costs of manufacturing their cars in Australia and a lack of business flexibility to maximize profits.
Internal discussion of the automobile manufacturing industry in Australia reveals a hard political commentary as well as worry over lost jobs and a potential economic downturn as consequences of the exodus of Toyota Australia, Ford, and General Motor Holden. The National Australian Manufacturing Workers Union (AMWU) national secretary, Paul Bastian, blamed the government�s lack of interest in supporting local Australian workers and promoting increased investments for the automobile industry for Toyota�s leaving. Vehicle secretary Dave Smith said that the absence of Toyota Australia would impact industries from shipping, transport, sales and more; he mentioned the potential (and likely) recession that could hit the parts of Australia who were most invested and dependent on the automobile manufacturing industry.
The manufacturing industry in Australia began in 1948 with the Chifley Holden. During the Tony Abbott government subsidies, handouts, and tariff protections that were common in the beginning decades of the Australian automobile manufacturing industry were cut off, making it difficult for companies like Toyota to justify doing business in a country where they were continually operating at a loss. Not only has Australia failed to maintain the business of the companies operating in it but also had no success growing its clean energy car sector or attracting new manufacturers to its shores.
There is, however, still time and opportunity for the Australian automobile manufacturing industry to regain some of its lost momentum; Toyota, Ford, and General Motor will have officially shut their doors in 2017, leaving 3 years in the meantime for other car manufacturers to leap on an empty market. This market already has a trained workforce as well as manufacturing facilities, knocking down up-front costs of creating a manufacturing industry from scratch.
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