Toyota to end car manufacturing in Australia

[warrant46]

Source: Associated Press

SYDNEY (AP) -- Toyota said Monday it will stop making cars in Australia by the end of 2017, spelling a final blow to auto manufacturing in the country, where car companies say high production costs and tough competition have made the business unviable.

Toyota's announcement, which will result in the loss of around 2,500 jobs, was widely anticipated, coming just two months after General Motors Co. said it would end production in Australia by 2017. Ford Motor Co. announced in May that it would cease Australian production in 2016.

The government had subsidized auto manufacturing, hoping to keep the industry alive as it supports tens of thousands of jobs in other areas including auto parts.

Read more: http://finance.yahoo.com/news/toyota-end-car-manufacturing-australia-062416184.html

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The 1% getting the World Order into shape

Toyota------"Oh those Pesky Union Jobs" ---"Yukky Work and Safety Rules too"

[seabeckind]

1. Oh noes...the tragedy </sarcasm>

I thought the most interesting of article was this:

"The government had subsidized auto manufacturing, hoping to keep the industry alive as it supports tens of thousands of jobs in other areas including auto parts.

Holden, which is the Australian arm of GM, received 1.8 billion Australian dollars ($1.6 billion) in federal government assistance in the past 11 years."

Turned off the spigot, did they? Perhaps now the gov't should eminent domain their azz and turn the factory over to labor.

Toyota need not worry, tho. We have lots of right to work states here which are ready to give them taxpayer money to maintain their profits. Even build their factory and give them land, too.

{added} The comments were pretty disgusting. If Austr had just given them more...

[mackerel]

9. When Toyota pulled out of the S.F. Bay Area, Tesla moved into their old

factory.

[Kelvin Mace]

2. So, if everybody is leaving the market

where does the "tough competition" come from?

[warrant46]

4. Korea and Thailand

http://en.wikipedia.org/wiki/Automotive_industry_in_Thailand

The Thailand automotive industry is the largest in Southeast Asia and the 9th largest in the World in 2012

[treestar]

3. start up a local car industry?

though I guess the cars would be more expensive, still . .

[seabeckind]

5. Not necessarily.

Most likely a lot of the parts involved are shipped in from suppliers. Those factories, just like the factories in this country, were outsourced. In fact, that was the first part of the automotive industry that was.

It's been obvious that the people "running" the mnufacturing process want to have nothing to do with actually building anything. Too difficult working on supply chains and infrastructure and maintenance. A lot easier to sit in at a desk and move numbers on a spreadsheet.

Australia is in the same place we are. In order to get their economy going again they will have to rebuild their entire manufacturing capability along 21st century lines. It'll take quite an investment and they will have to get the money the same place we will...

from those who have it.

As I mentioned above...the comments in the article say that the problem is that the company is taxed too much so they are leaving. I think the opposite is true. Let the company know in no uncertain terms if they wish to make any profit in Australia (or here) it will be because they invested in the common people there, not the global investor.

[bossy22]

6. it's almost impossible

they are too small of a market to support their own industry. The cars would end up being triple the price they would be here (imagine a toyota camry costing $60,000).

The problem is simply buying power- Australia is a small economy relatively, it just doesn't have the buying power to support major manufacturers like toyota.

[seabeckind]

7. Perhaps

Then again maybe the paradigm changes.

It'll never change as long as the status quo makes the rules.

[bossy22]

8. the paradigm won't change as long as technology advances and

Australia's market stays small.

Again, who is going to pay $60,000 for a basic car? Talk about pricing the majority of your consumer base right out of the market.