Toyota to shut local production in 2017
Toyota workers and politicians react to the news with fears it could tip Victoria and South Australia into recession, economists have warned. Nine News.PT1M42S http://www.canberratimes.com.au/action/externalEmbeddedPlayer?id=d-32diy 620 349 February 11, 2014
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- And then there were none
- Car maker likely to stay popular in Australia
- Federal politics: full coverage
The end of car manufacturing in Australia - confirmed with Toyota's announcement that it would shut local production in 2017, taking thousands of jobs with it - could tip Victoria and South Australia into recession, industry experts and economists have warned.
The automotive giant's global boss, Akio Toyoda, travelled to the Altona plant and told 2500 workers their jobs would go in three years. The decision is a massive blow for the Victorian economy in particular, where more than 25,000 jobs are likely to go across the car and automotive components industries. Unions claim 50,000 skilled jobs may be lost nationally. Toyota will follow Ford and Holden out of the country, with all three car makers announcing in the last year that they would cease manufacturing by 2017. All three brands will now import all their vehicles.
AMWU officials Steve Dargavel and Dave Smith leave talks to speak to the media after Toyota announced the closure of the Altona factory by 2017. Photo: Angela Wylie
And the Australian parts supply industry warned the announcement could see the sector collapse before 2017 unless the Abbott government intervened.
''It is one of the saddest days in Toyota's history,'' the car maker's Australian head, Max Yasuda, said on Monday, after telling workers the company would soon cease production of its Camry, Aurion and other models in 2017.
The company had done all it could to keep making cars in Australia, he said.
The Australian dollar, the high cost of production, free trade agreements and the country's fragmented auto markets were the reasons for the company’s decision, he said.
Prime Minister Tony Abbott said nothing the government said or did would ‘‘limit the devastation that so many people will feel at this point’’.
‘‘While some businesses close, other businesses open, while some jobs end, other jobs start,’’ he said.
Premier Denis Napthine will on Tuesday fly to Canberra to meet Mr Abbott to discuss the need for a package for workers and those affected by Toyota’s closure.
Dr Napthine said he was extremely disappointed by ‘‘the suddenness’’ of Toyota’s decision.
He said he had been told by Mr Toyoda there was nothing the Victorian government could do to change their mind.
Federal Opposition Leader Bill Shorten blamed Toyota’s demise on the Abbott government. ‘‘It’s an unmitigated disaster,’’ he said.
‘‘The car industry has died under the Abbott government. It’s a disgrace.’’
Mr Shorten said Mr Abbott did ‘‘not give a stuff about jobs in Australia – he is just busy playing political games and stunts’’.
Industry Minister Ian MacFarlane said Toyota’s decision had changed the face of manufacturing in Australia.
He said Toyota had made no requests for financial assistance to the federal government, but had expressed frustration at the company’s inability to make changes to its workplace agreement with employees in a bid to save about $3500 per vehicle.
Former premier Steve Bracks, who chaired a 2008 review of the car industry, said the decision was a tragedy, which could have been ‘‘entirely avoided’’.
He said neither Prime Minister Tony Abbott nor Premier Denis Napthine had ‘‘lifted a finger’’, arguing both men should have gone to Japan to press the case for the car maker.
Labor industry spokesman Kim Carr said the government had ‘‘a viciousness to it, a callous disregard for the social consequences’’ of companies like Toyota departing Australia.
University of Adelaide economics and workplace expert John Spoehr warned the closure of all three car makers in Australia could ultimately pull Victoria and South Australia into recession.
‘‘This is the collapse of an entire industry, not just Ford, Toyota and General Motors Holden,’’ Professor Spoehr said.
‘‘Those companies are the tip of the automotive industry – underneath them is a massive components industry and thousands of other suppliers’’ such as transport, business services and advertising.
"It starts to amount to thousands and thousands of jobs.
"With Holden alone we were looking at 50,000 jobs . . . [now] you are looking at hundreds of thousands.’’
The chief executive of the Federation of Automotive Products Manufacturers, Richard Reilly, said most component suppliers didn’t have other revenue streams.
‘‘This is devastating, diabolical,” he said.
with James Massola, Heath Aston, Henrietta Cook, Sam Hall