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GTO, G8, Caprice and SS parts are about to get that much dearer.

Toyota Ending Australian Production by 2017



Feb 10th 2014

Toyota Australia today announced that it will stop building cars in Australia by the end of 2017 and become a national sales and distribution company.

This means that local manufacturing of the Camry, Camry Hybrid and Aurion vehicles, as well as the production of four cylinder engines, will cease by the end of 2017.

The decision was not based on any single factor. The market and economic factors contributing to the decision include the unfavourable Australian dollar that makes exports unviable, high costs of manufacturing and low economies of scale for our vehicle production and local supplier base.

Together with one of the most open and fragmented automotive markets in the world and increased competitiveness due to current and future Free Trade Agreements, it is not viable to continue building cars in Australia.

Toyota Australia President and CEO, Max Yasuda, was joined by Toyota Motor Corporation President and CEO, Akio Toyoda, as he made the announcement to employees late this afternoon.

"This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years," Mr Yasuda said.

"While we have been undertaking the enormous task of transforming our business during the past two years, our people have joined us on the same journey, which makes it even more difficult to announce this decision

"We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia.

"Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts.

"Our focus will now be to work with our employees, suppliers, government and the unions as we transition to a national sales and distribution company. Support services will be available to our employees and we will do everything that we can to minimise the impact of this decision on our employees and suppliers."

Mr Yasuda said approximately 2,500 employees directly involved with manufacturing will be impacted when the plant stops building cars in 2017.

There will also be an impact on the company's corporate divisions, which will be studied over the coming months to determine what roles and functions will remain in the future.

Mr Yasuda said that Toyota was also committed to providing support to the industry as it prepares for the end of vehicle manufacturing in Australia.

"We will work with our key stakeholders to determine how to provide the best support to our employees, suppliers and local communities during the coming years," Mr Yasuda said.

"Not only do we need to ensure our local suppliers and employees can plan for their future, we also need to make sure that we continue to produce high quality vehicles and engines for our domestic and export customers."

Toyota Australia will continue to be involved in its local communities and employ thousands of people both directly and indirectly via its extensive dealership network.

It is the company's intention to import the Camry and Aurion vehicles beyond 2017, along with the entire range of Toyota passenger and commercial vehicles.

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GM to Cease Holden Manufacturing in Australia by 2017



2013-12-10

DETROIT – As part of its ongoing actions to decisively address the performance of its global operations, General Motors today announced it would transition to a national sales company in Australia and New Zealand. The company also said it would discontinue vehicle and engine manufacturing and significantly reduce its engineering operations in Australia by the end of 2017.

"We are completely dedicated to strengthening our global operations while meeting the needs of our customers," said GM Chairman and CEO Dan Akerson. "The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market and arguably the most competitive and fragmented auto market in the world."

As a result of the company's actions, approximately 2,900 positions will be impacted over the next four years. This will comprise 1,600 from the Elizabeth vehicle manufacturing plant and approximately 1,300 from Holden's Victorian workforce.

Holden will continue to have a significant presence in Australia beyond 2017, comprising a national sales company, a national parts distribution centre and a global design studio.

GM Holden Chairman and Managing Director Mike Devereux said an important priority over the next four years would be to ensure the best possible transition for workers in South Australia and Victoria.

"This has been a difficult decision given Holden's long and proud history of building vehicles in Australia," said Devereux. "We are dedicated to working with our teams, unions and the local communities, along with the federal and state governments, to support our people."

The sale and service of Holden vehicles will be unaffected by this announcement and will continue through the extensive network of Holden dealers across Australia and New Zealand. Warranty terms and spare parts availability will remain unchanged.

"GM remains committed to the automotive industry in Australia and New Zealand. We recognize the need for change and understand the government's point of view. Moving forward, our business model will change significantly however, GM Holden will remain an integral part of its communities and an important employer both directly and through our dealers," Devereux said.

Since 2001, the Australian dollar has risen from US$0.50 to as high as US$1.10 and from as low as 47 to as high as 79 on the Trade Weighted Index. The Australian automotive industry is heavily trade exposed. The appreciation of the currency alone means that at the Australian dollar's peak, making things in Australia was 65 percent more expensive compared to just a decade earlier.

With the decision to discontinue vehicle and engine manufacturing in Australia by the end of 2017, GM expects to record pre-tax charges of $400 million to $600 million in the fourth quarter of 2013. The charges would consist of approximately $300 million to $500 million for non-cash asset impairment charges including property, plant and equipment and approximately $100 million for cash payment of exit-related costs including certain employee severance related costs. Additional charges are expected to be incurred through 2017 for incremental future cash payments of employee severance once negotiations of the amount are completed with the employees' union. The asset impairment charges will be considered special for EBIT-adjusted reporting purposes.

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Ford Ending Australian Production in 2016



May 23rd, 2013

Ford is transforming its Australian business by accelerating the introduction of new products for Australian customers, enhancing the sales and service experience, and improving its business efficiency and profitability.

To better position the company to compete in a highly fragmented and competitive market, Ford will cease local manufacturing in October 2016. All entitlements are protected for the 1200 employees whose jobs are affected, and the company will work through the next three years to provide support
Ford will proceed with plans to launch updated versions of the Falcon, Falcon Ute and Territory in 2014, as well as offering other world-class products, such as the Ford Kuga, Ranger and Focus. The company will also strengthen its product lineup even further with a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016.

Ford’s presence in Australia will remain significant – with 1500 team members, more than 200 dealers nationwide and a continued strong commitment to supporting the communities in which the company operates.

MELBOURNE, Australia, 23 May 2013 – Ford Motor Company is transforming its business operations in Australia to provide customers with even more new products, and improved sales and service, while creating a more efficient and profitable business structure.

Ford announced the plan today, including its intention to cease its local manufacturing operations in October 2016. The decision on local manufacturing was driven by increasingly challenging market conditions – including market fragmentation and the high cost of manufacturing. Ford losses in Australia in the last five years have totaled approximately $600 million (AUD).

“All of us at Ford remain committed to our long history of serving Australian customers with the very best vehicles that deliver cutting edge technology at an affordable cost,” said Bob Graziano, president and CEO of Ford Australia. “Unfortunately, due to challenging market conditions we are unable to do that longer-term while continuing to manufacture locally.”

Support for Employees

Approximately 1200 jobs in Ford’s Broadmeadows and Geelong manufacturing plants will become redundant when manufacturing at those sites ceases in 2016.

All manufacturing employees’ benefits will be provided in line with current agreements. During the next three years, Ford will work with affected employees and their representatives on support arrangements and provide clarity about the closure process.

“We know this announcement is very difficult, especially for our employees,” said Graziano. “Providing support to those in our team whose roles will be affected is a key priority for us during this three-year transition period.”

Future vision for Ford Australia

While the way Ford is structured is changing, Ford’s commitment to Australia remains strong.

“Ford will remain a significant employer in Australia, with more than 1500 team members, as will our network of more than 200 dealers around the country,” said Graziano. “The Australian team’s role as a global centre of excellence for vehicle development also will continue to be an important focus for us.”
Australia is currently one of four product development hubs for Ford globally. Recently, the Australian team has been responsible for designing, engineering and testing global vehicles, including the Ford Ranger and Ford Figo, and will continue this expertise.

Today, Ford has more than 1000 team members in product development in Australia, giving the company more designers and engineers than any other auto company in Australia.

“Our customers will buy and service Ford vehicles through the same great dealers we have throughout the country today, and we will continue to support the communities in which we operate,” said Graziano.

Decision follows comprehensive review process

Given the changing dynamics of the auto industry, a number of business scenarios were reviewed during the past year to determine next steps for Ford’s Australian business.

All viable alternatives were evaluated as part of the process including manufacturing various types and combinations of vehicles for local sale as well as the viability of a significant export program. The scenarios investigated also included varying levels of government support, manufacturing cost reductions and productivity improvements.

Australia has annual sales of approximately 1.1 million new vehicles, and customers have access to more than 65 brands and 365 models available for sale. This makes Australia one of the most competitive and crowded automotive markets in the world.

“Given the fragmented marketplace and the low model volumes that result, we decided that manufacturing locally is no longer viable,” said Graziano.

More New Products

As part of the transformation, Ford has aggressive plans to introduce even more new products for Australian customers – including a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016. That is in addition to already announced new versions of the Ford Falcon, Falcon Ute and Territory, as well the new Ford Kuga, Ranger and Focus.

“We will be introducing a number of exciting new vehicles and technologies during the next few years that will excite our Australian customers,” said Graziano. “The breadth of our line-up will increase by more than 30 per cent, ensuring we continue to offer our customers an outstanding range of cars, SUVs and light trucks long into the future.”

Upgraded Sales and Service Experience

Ford also is significantly enhancing its approach to the sales and service experience. The company has appointed a dedicated Consumer Experience team to introduce a series of initiatives to provide customers with even better after-sales care.

“We have a range of projects under way to significantly enhance our customer’s experience with Ford,” said Graziano. “This includes one of the only programs in Australia that provides a capped price on all servicing costs for seven years.”

Ford continues to be part of Australian communities

“Ford vehicles have been part of the automotive landscape in Australia for almost 110 years and we have manufactured here since 1925. We are proud of that history. We are proud of our role in Australia and we haven’t made this decision lightly.

“Overall, we are changing, but our commitment to Australia remains strong. We’ll move through this transition and continue to be a vibrant and strong part of the Australian driving experience,” said Graziano.

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Analysis



February 10, 2014

Toyota’s decision to halt local vehicle manufacturing in 2017 is a bigger body blow than Holden’s decision late last year to do the same.

Holden had more iconic significance – Toyota even boasts in its TV commercials that it is hip to be square – but it is Toyota that is Australia’s big vehicle exporter, and the company considered to have the best chance of surviving.

Industry Minister Ian Macfarlane argued on Monday that Australia absorbs hundreds of thousands of redundancies every year, but as he also acknowledged, this is a huge moment for Australia.

It’s a test of the economic model that leaves Australia open to import competition and trusts that innovation will, in time, not only replace jobs that import competition destroys, but create ones of the same or better economic and social quality.

Three vehicle makers - Ford, Holden and Toyota – have announced in less than a year that they intend to quit Australia. The country will have no vehicle manufacturing industry from 2017 onwards, a situation that is almost unique in the OECD, and there's plenty of candidates in the blame game.

Two of the vehicle-makers, Holden and Toyota, have announced their decisions since the election of the Abbott government, which campaigned promising to cut assistance to the vehicle industry.

Toyota’s decision also comes after it failed last December in an attempt to alter its enterprise agreement with employees, with the Federal Court supporting a union-backed argument that it could not ask its factory workers to vote on the changes.

Middle East exports

Toyota was considered to be Australia’s most commercially viable vehicle maker because its vehicle exports to markets including the Middle East gave it additional manufacturing volumes and economies of scale that could not be extracted from the relatively small Australian domestic market.

Some also thought that as the last vehicle-maker standing it would be the focus of government support. It may well have also seen local sales rise after its competitors departed in 2017, as ‘‘buy Australian’’ demand switched over.

Toyota has decided to go anyway.

The high Australian dollar had hurt it in export markets, it said, adding that it was also hurt by relatively high manufacturing costs and low economies of scale.

It has however gone ahead with the pullout, even though at the current level of about US89.3c, the $A is about US21c or 19 per cent below its August 2011 high.

Toyota has also taken the decision even though it has launched an appeal against the Federal Court decision stopping it from putting workplace changes to its workers that could have cut its production costs by about 15 per cent.

Profound problems

The implication is that the problems Toyota and the rest of the industry face in this country are profound.

The Industry Commission estimates that about $30 billion of assistance flowed to the vehicle makers between 1997 and 2012.

However, production of vehicles here is only still about 1 per cent of the overall global production total. Toyota produced just over 100,000 vehicles a year and experts have told the Commission that a production run of at least 200,000 vehicles a year is needed to be globally competitive.

The Federal, Victorian and the South Australian governments at least have some time to prepare for the evaporation of the industry in 2017.

Long-term, government needs to create the right conditions for new businesses to emerge. That is one of the Abbott government’s mantras, and Toyota’s decision will give its push for labour law reform momentum.

Governments also have to shelter the economy from the shock of the closures, however, and the exit of Mitsubishi’s from car making in Adelaide that began in 2004 is that re-training programmes are crucial. Most Mitsubishi workers found new jobs quickly – but they were most often lower paying ones.

http://www.smh.com.au/business/comme...210-32cx3.html

NW-99SS

iTrader: (6)

Sad times ahead for the Australians...

TriShield

This came very close to happening here in 2009 had there not been intervention. Australia's current government has opted not to get involved and it's basically destroyed their entire manufacturing from the very top right down to each small supplier and the grocery stores, pubs, etc.

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Ford decided to call it quits almost a year ago. GM pulled the plug on Holden a few months ago when the newly elected government made a show of discontinuing support for the auto industry. Toyota followed this past week.

NW-99SS

iTrader: (6)

Difficult times ahead for Aussie tax payers, and those 55000+ soon to be unemployed. And that's just the surface, not including the infrastructure that supports all those supply companies and assembly plants.

TriShield

Can anyone imagine a very high placed cabinet official in the US government doing this to any US automaker back in 2009?


Now it's not just Holden, but everyone is gone.

NW-99SS

iTrader: (6)

I hope they are happy now - auto manufacturing officially dead there, they get to keep their 1B and give of who knows how much because of it?

JakeFusion

iTrader: (7)

If the Tea Party had been prominent in 2009, yes, I could have seen one of them standing up and saying that to the auto industry.

What would that have done to America?

Sometimes the cost is too high not to intervene.