Filed under: Hirings/Firings/Layoffs , Plants/Manufacturing , Toyota , Australia With Ford and General Motors both announcing an end to production in Australia , the country’s auto industry is in a bad way. With the exit of two big players, there’s increased concern that a third Australian manufacturer, Toyota , will be forced out, as well. “We are saddened to learn of GM Holden’s decision. This will place unprecedented pressure on the local supplier network and our ability to build cars in Australia,” Toyota Australia said in a statement. The GM closure of Holden production will be the direct end to 2,900 jobs, but will also force a dramatic reduction in the size of the country’s supplier network, as there will simply be fewer cars to build. In the same statement, Toyota Australia said it would work with suppliers and local government to figure out whether continuing production Down Under was even feasible. According to Automotive News , a representative for the Australian Manufacturing Workers’ Union told reporters it was “highly likely” that Toyota would also close up shop within the next few years. Toyota fears supplier pressure in Australia with GM pull out originally appeared on Autoblog on Wed, 11 Dec 2013 13:03:00 EST. Please see our terms for use of feeds . Permalink
Filed under: Government/Legal , Plants/Manufacturing , Toyota , Australia In the wake of last month’s announcement that Ford will cease automotive and engine production in Australia after 2016 , many are wondering what the country’s other automakers will do. Holden has already confirmed it will stay the course despite Ford’s exit . Much of the GM subsidiary’s reason for sticking around has to do with a deal made last year between Holden and the Australian government. In order to secure a GM investment of $1 billion and a commitment to keep manufacturing in Australia through 2022, the government threw in an extra $215 million. According to Australia’s Minister for Innovation and Industry, Greg Combet, the government is now in talks with Toyota for a similar deal. Toyota operates one plant in Australia, the Altona manufacturing and engine plant in Victoria. The facility produces the Camry , Camry Hybrid and Australasia-only Aurion for both the local market and export. The report from GoAuto indicates that negotiations with the Australian government would include adding production of a third, all-new model at Altona, possibly the new RAV4 , because it shares many parts with the Camry. Mr. Combet did not say what amount the government would be willing to offer in exchange for an investment by Toyota and commitment to continue manufacturing in Australia, or whether it would be more or less than the Holden deal, but did confirm the talks were happening.