Toyota to cease car manufacturing in Australia by 2017

Toyota Australia announced on Monday that it will stop making cars in Australia by 2017. This much anticipated decision, following similar moves by Ford and General Motor Holden last year, has marked an end to the country's car manufacturing industry.

Toyota Australia President and CEO Max Yasuda made the announcement to staff in Melbourne.

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

About 2,500 workers are expected to lose their jobs, while corporate jobs may go too after a review of the company's operations.

Yasuda blamed the "unfavourable Australian dollar", high costs of manufacturing and low economies of scale for the decision.

Yasuda said manufacturing operations in Australia have continued at a loss despite efforts to turn things around.

Toyota's announcement followed suit of Ford and Holden's decision, leaving Australia without a local car manufacturing industry by 2017.

National Australian Manufacturing Workers Union (AMWU) national secretary Paul Bastian said the decision reflected the Coalition government's refusal to support investment in Australia, and a lack of support and respect for Australian workers.

AMWU vehicle secretary Dave Smith said the decision would have devastating impact on everything from road transport to shipping and beyond.

"The magnitude of this decision in the community cannot be underestimated," he said. "We are looking at a potential recession all along the south-eastern seaboard."

Opposition Leader Bill Shorten called the closure of manufacturing operations at Toyota Australia, the country's last major auto producer, as "a national tragedy".

"This is an economic catastrophe with a terrible human cost. It marks the end of automotive manufacturing industry in Australia that began with the 1948 Chifley Holden," he said.

"This was not inevitablethis is a direct consequence of the (Tony) Abbott Government that has abandoned the car industry and abandoned manufacturing jobs."

Greens Deputy Leader and industry spokesperson Adam Bandt said that Prime Minister Abbott has killed the auto industry and jeopardised Australia's clean energy future.

"Successive governments have failed to make auto manufacturing sustainable, but Tony Abbott was the final nail in the auto industry's coffin," said Bandt.

"High-end manufacturing is key to Australia's continued prosperity and without adequate support from the government it cannot thrive and shift to a sustainable footing."

The car industry has been given 19 billion AU dollars (17 billion U.S. dollars) in handouts and tariff protection over the past decade. The Coalition government had refused to provide further subsidies to the automobile manufacturing industry.

"There's no question that manufacturing's share of the economy has been declining over time," said Jim Minifie, economist from the Grattan Institute, after Holden's decision to cease the car production by 2017 in December last year.