Global Car
Industry
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- India's car market moves into top gear Watch
Toyota is
to end its vehicle and engine production in Australia by the end of 2017,
affecting thousands of jobs.
It also announced plans to possibly scale down the operations of its development and
technical centre there.
Toyota said
high manufacturing costs had forced it to make a "painful decision".
Last year,
Ford and General Motors' Holden unit also announced plans to stop producing
cars in Australia.
Toyota's
exit will leave Australia with no more car manufacturers, effectively ending
the local industry.
"We
believed that we should continue producing vehicles in Australia, and Toyota
and its workforce here made every effort," Toyota Motor Company president
Akio Toyoda said.
"However,
various negative factors such as an extremely competitive market and a strong
Australian dollar, together with forecasts of a reduction in the total scale of
vehicle production in Australia, have forced us to make this painful
decision."
The
Japanese auto giant, which first began making cars in Australia in 1963, said
it "intends to provide the best support it can, including employment
assistance" to those affected by the decision.
Australian
exit
Toyota's
decision comes despite appeals from Australian Prime Minister Tony Abbott, who
has been looking to keep the carmaker operating in the country.
Car
manufacturers have been pulling out of Australia as the rising cost of doing
business in the country has hit profits.
Last May,
Ford said it would close its car lines in Australia in October 2016 with the
loss of more than 1,000 jobs.
General
Motors' Holden unit has also announced plans to stop production in 2017,
affecting nearly 3,000 jobs.
Japan's
Mitsubishi Motors sold its last Australian-made car in 2010.
Last year,
Toyota - the world's top global car maker by sales - found itself in a dispute
with Australian car plant workers over proposed changes to their contracts.
This
included changes to overtime requirements and the removal of additional
allowances to trained first-aid officers and workers who make blood donations.
In
December, Australia's Federal Court blocked a vote on the contractual changes,
which Toyota said it would appeal against.
The
Australian government also said last month it would intervene in the dispute.
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