A major union says Toyota’s decision to exit manufacturing in Australia by the end of 2017, could trigger a recession along the country’s south-eastern seaboard.
Toyota plans to finish vehicle and engine production in Australia in 2017, but the automaker is now citing the strong Australian dollar, together with forecasts of a reduction in the total scale of vehicle production in Australia, as reasons for withdrawing in three years.
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The Australian Manufacturing Workers Union (AMWU) slammed the decision as a “devastating day” however, maintaining the automaker was “abandoning” production in the country, while also criticising the coalition government’s “lack of support” for workers.
“This union will keep fighting for manufacturing workers and to maintain a strong manufacturing industry, but today’s decision has made that task harder than ever before,” said AMWU national secretary Paul Bastian.
Toyota’s announcement also follows hard on the heels of Holden’s decision to leave Australia and Ford’s move to exit in 2016.
AMWU National Vehicles Secretary Dave Smith said the decision would cost thousands of jobs, not only at Toyota but all the way down the supply chain.
“The magnitude of this decision in the community cannot be underestimated,” said AMWU national vehicles secretary, Dave Smith. “We are looking at a potential recession all along the south-eastern seaboard.
“The government’s lack of support for manufacturing workers and the communities they support is contrary to the national interest, will harm our economy and devastate communities.
“But today we are most concerned about our members and all workers at Toyota – men and women who have to go home to their families with uncertain employment futures.”
Smith aimed a broadside at the Coalition, accusing it of “chasing important and viable operations out of Australia,” maintaining the effects would also be felt in the road transport and container shipping services, as well as those that kept Australian-made cars on the road.
“There’s not a car industry in the world that doesn’t receive some sort of government support,” said Smith.
“If you value something, you invest in it. This government is driving jobs and our economy into the ground.”
For his part, Toyota Australia president, Max Yasuda, insisted: “We did everything that we could to transform our business, but the reality is there are too many factors beyond our control that make it unviable to build cars in Australia.
Around 2,500 jobs will be affected when the plant stops building cars in 2017.
