Australia’s automotive supplier association is warning car manufacturing could “go completely” in the country, with 33,000 component jobs at risk following producer exit announcements.
The Federation of Automotive Products Manufacturers (FAPM) issued its stark assessment of the sector as Toyota became the latest automaker behind Ford and Holden, to announce it would cease production in Australia in 2017.
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“The decision by Toyota Australia to cease manufacturing in Australia in 2017 is a very dark day for Australia,” said FAPM chief executive, Richard Reilly.
“Traditional automotive manufacturing will go completely. Our industry is devastated.”
FAPM estimates up to 33,000 jobs in the automotive supply chain will be affected by the announcement as Toyota’s decision, following on from Ford and GM-Holden last year, could see the loss of thousands of jobs in engineering, design, prototyping, R&D and assembly.
The association said it appreciated the decision was not based on any single factor but a combination of domestic and international pressures including an unfavourable Australian dollar, low volume, “unfair” free-trade-agreements, an open and fragmented market and “unequal investment competition” from other national governments around the world.
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By GlobalData“We may now not have time enough to transition” said FAPM national president, Jim Griffin.
“Our industry has the skills and know-how to be competitive but we need time and assistance to re-shape our businesses, to get new customers and diversify into new markets.”
The FAPM added it would work with its members during the coming days to assess the impact of the announcement.
It is expected the supply chain will experience widespread job losses leading up to 2017 unless it can successfully diversify into non-automotive industries.
“The government needs to stop blaming workers for the problems besetting the industry,” Australia Manufacturing Workers Union national secretary, Paul Bastian, told just-auto. “The time for rhetoric has to cease.”
Reilly added: “A lot of our members won’t make it.” “Our only hope now is to diversify, export or attract new models of doing business.
“There are still some good companies out there with innovative businesses and world class technologies.
“We must have a strategy to save as many as possible.”
