Toyota has made it official that it too will end all auto assembly Down Under by late 2017.
First Ford made the announcement, then Holden and now Toyota has confirmed that it's giving up on Australian manufacturing operations. The Japanese automaker has confirmed that it too will cease production and assembly operations in Australia by the end of 2017. Toyota claims that the closure will directly affect 2,500 current employees, but Australian sources are claiming the layoffs will be much higher.
The reason is that the closures will also affect local auto suppliers. At the moment, Toyota builds the Camry, Camry Hybrid, and Aurion models Down Under as well as four-cylinder engines. After 2017, however, Toyota Australia will import everything. So why have these major brands made the decision to shut down Australian manufacturing? The main reason is the high Australian dollar, which has hurt export opportunities, but has made business better for imports. Other factors are the country’s high production and wage costs along with a shrinking car market that already has too much competition. Despite some government assistance, car manufacturing in Australia will soon be a thing of the past.