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THE Australian car manufacturing industry is officially on the brink after Toyota put the Federal Government on notice yesterday by revealing it must achieve the same drastic cost reductions as Holden or face shutdown.

Toyota executives publicly talked up the company’s future in Australia, reflected on its 50-year history as a local manufacturer and did not explicitly threaten a factory closure.

However, after the announcement a senior Toyota insider told News Corp Australia that Toyota is losing more money than Holden on its locally-made cars and that manufacturing in Australia is “not sustainable”.

"If Holden goes Toyota will almost certainly follow," said the senior Toyota executive, speaking on condition of anonymity. "It won't happen the same week, it will be a slow wind-down."

Read more: http://www.news.com.au/business/com...obs-in-melbourne/story-fnda1bsz-1226740173978

 

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Ford's done by 2017 too, right? I didn't know Holden and Toyota were in the same boat, but it makes sense.

Does Mitsubishi still have an Australian manufacturing operation (Diamante)?
 

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This is sad, but come on in an industry where economies of scale are everything, it's surprising Australian car manufacturing has held on for so many decades.
This.

Australia is moving up in the global economy. Much more of a service and financial capital now than manufacturing.
 
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Discussion Starter · #6 ·
This.

Australia is moving up in the global economy. Much more of a service and financial capital now than manufacturing.
Aren't they also a huge exporter of various raw materials to China? I think that is driving up the value of the $AU and making wages uncompetitive especially compared to South Korea or even the US.
 

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This.

Australia is moving up in the global economy. Much more of a service and financial capital now than manufacturing.
Exactly. It doesn't have to spell the end of Australia.

It is amazing that they held out as long as they did, but this is the sad reality of globalism... especially when you are so close to extremely MFG-competitive regions. Australia and the rest of east Asia is like England is to the rest of Europe. Japan's government basically seems to do whatever the F it takes to develop industrial policies to help industries like autos.

Personally I think it is a good thing, because it obviously isn't a sustainable industry to have and by subsidizing it more... that's just wasted investment that could go elsewhere to foster new industry (i.e. Accept it and move on to brighter options.). :thumbup:

While MFG might not be in the cards... there's nothing to say the ENGINEERING/DESIGN part needs to be dropped. The question Australians should be asking themselves is:

>>>"How many aspects of the car can Australian talent still maintain and/or grow?"
 

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............

I happen to sell parts for both Holden and Toyota, fact I was there not long ago visiting (Melbourne)
great trip by the way!

Let me say that the starting hourly rate there is $14 / hr and everything there is super expensive and I really mean it!!

I am sure that is one of the reasons the boat is sinking there!!
 

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Wow. Who would have guessed Australia's automobile manufacturing industry would go down under?
 

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It's a scale thing.

To make money, Ford, Holden and Toyota have to build and sell xyz cars a day/month etc.

But the problem is, they're not. Ford is literally building and parking brand new Falcons outside where they sit for months before they might get sold. By the look of it, Toyota and Holden are doing the same.

Petrol is so expensive now, along with registration and insurance, that people just aren't buying big cars like the Falcon or Commodore anymore. Plus the general public isn't too happy that their tax money is being used to prop up three manfucturers. Toyota got a big handout from the Victorian Government a few years ago when they didn't even ask for it or need it.

About all Australia is good at now is designing stuff and digging stuff out of the ground and selling it for a reasonable price to China.

Oh and our economy is ****house and we have a nutcase for a Prime Minister, so people aren't spending like they used to.
 

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^Ford AU shot themselves in the foot when FoMoCo wanted to retool the Falcon plant to produce the new Focus for the Australasia market, and the dumbs*its at Ford Au said no because the Falcon is their icon. I believe they are now building the new Focus in Thailand. . :banghead::banghead::banghead:
 
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Discussion Starter · #13 ·
^Ford AU shot themselves in the foot when FoMoCo wanted to retool the Falcon plant to produce the new Focus for the Australasia market, and the dumbs*its at Ford Au said no because the Falcon is their icon. I believe they are now building the new Focus in Thailand. . :banghead::banghead::banghead:
Did they really turn it down? How did they not see that???

But yeah, with everyone setting up shop in Thailand now, its tough for Australia to compete.

http://www.autonews.com/article/201...vehicle-exports-highlight-thailands-growth-as
 

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It probably doesn't help that the population of Australia is less than some of our states. There's just not enough customers to justify the investment, unless you're exporting vehicles, and with such a high wage structure prevalent in the country, compared to pretty much everywhere else, that's just not competitive either.
 

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Did they really turn it down? How did they not see that???
"Only milk comes in 2 litres" bogan mentality, that's how.

Even taxis are now moving to Camry Hybrid (5.2L/100km as observed by yours truly).

The only medium sized car assembled in Australia is Holden Cruze and even then with all parts getting shipped from S. Korea.
 

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I have a friend who works in the engineering division at Ford of Australia, it seems like they will stick around even after the manufacturing is gone. But it is what it is, the loss of the manufacturing will mean a drastic scale down in all of the other supplier chains.
 
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Discussion Starter · #18 ·
"Only milk comes in 2 litres" bogan mentality, that's how.
Wow yeah I guess.

Australia September 2013
1 Toyota Corolla 3,443
2 Toyota Hilux 3,340
3 Mazda3 3,052
4 Holden Commodore 2,865
5 Hyundai i30 2,675
6 Nissan Navara 2,275
7 Toyota Camry 2,223
8 Ford Ranger 2,037
9 VW Golf 1,852
10 Holden Cruze 1,851
11 Mitsubishi Triton 1,761
12 Mazda CX-5 1,670
13 Hyundai ix35 1,667
14 Ford Focus 1,642
15 Hyundai i20 1,566

Of the top sellers, only the Commodore is below average in fuel efficiency. :screwy:
 

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I think the writing is on the wall for both Toyota and Holden. I really doubt there will be any sort of car assembling in Australia after the current model runs of Camry, Cruze, and Commodore is over and done with.
 
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