What will happen to Toyota's Australian manufacturing activities?

[Syndrome]

How long will they hold out as the last vehicle manufacturer in Australia?

[Mighty Reds]

They sell as much if not more than what Holden/Ford do combined so it will be interesting to see what excuses they come up with.

[BroadyFord]

I've been reliably informed that Toyota will still give it a crack despite the Holden closure, however that is likely to be seriously undermined if the workers vote against the EBA changes on Friday.

[vztrt]

They'll announce soon enough now. Supplier base is their problem.. Depending on the contract agreements with Govco it wouldn't surprise me if they pulled out even earlier then Ford/Holden. It would just need a bit of time to get production lines ready for extra units.....which is about 3-4 month of work.

[flooded one]

Originally Posted by BroadyFord

I've been reliably informed that Toyota will still give it a crack despite the Holden closure, however that is likely to be seriously undermined if the workers vote against the EBA changes on Friday.

give them hell Toyota!! I hope you stay here a lot longer then 2017!!!

[Syndrome]

Originally Posted by vztrt

They'll announce soon enough now. Supplier base is their problem...

That is the main question. With a lot of local based suppliers about to go to the wall in 2016/2017, will Toyota want to import all the parts for the Camry/Aurion just to screw them together in Australia?

[BroadyFord]

Statement from Toyota:

[Wretched]

I take that as a step closer to a closure announcement.

[Hawkeye84]

They wont have much control over it unfortunately - They will probably head down the same path.

With Ford and Holden pulling out, the demand for the components will go down, unemployment in the components industry will rise as a result and no doubt to cover the falling demand/profits, prices of those components will rise. Toyota will then feel the pressure of the rising production prices - theyll probably pull out 2018

[cheap]

Toyota will close down, probably much sooner than was planned.

The unions can lean on Toyota all they want, the party is ending soon.

[b0son]

Surely foreign-sourced components would be cheaper anyway?

[BroadyFord]

I'm not so sure.

1. The government can shift what's left in the ATS from Ford and GMH to Toyota.
2. Toyota could take advantage of the fact it's the only local manufacturer left.
3. The government will not want to see another (far bigger) manufacturer fall under their watch. It would be in their interests to work closely with Toyota to prevent that from happening.

[Mighty Reds]

Toyota could potentially reap the benefits of being the last man standing.

[xtremerus]

They will probably just stay until the current Camry/Aurion model finishes.
They won't re-tool for the future model.

[blueoval]

Could making a RWD Aurion be a possibility or is that wishful thinking on my part? I only say this due to the love of the RWD cars among the vehicle enthusiasts here.

Just thinking out loud

[BHDOGS]

so how many people are going to buy toyotas now that fords and holdens gone considering all the people here banging on about how people are the devil if they dont buy a holden now fords left time for them to sell up and buy a toyota.

[jpd80]

I wonder if Hyundai / Kia see a very lucrative market for their 3.8 V6 & 5.0 V8 RWD sedan and Coupe combos....

One door shuts, another opens.....

[Brazen]

With no Falcon and Commodore could the Camry/Aurion benefit? Every single purchaser who wants to buy Australian, big business fleets, government fleets will be forced to go Camry/Aurion. All Governement funding would go to Toyota. Maybe Toyota will double down and exploit their position.

Use the $1billion Automotive Transformation Scheme to focus local suppliers purely on supplying the global parts supply chain for the Camry/Aurion/Rav4s built all round the world.

Who knows though, probably not looking good.

[danzvtil]

toyota arent building here because they can get a good deal on a camry wing mirror.They are here to make a profit. If a door trim can no longer be bought locally, they will import it from the factory that supplies to 8 OTHER CAMRY PLANTS around the world for half the price.As previously signalled by toyota, it costs too much to build cars here, the middle east will be supplied ex China/Thailand or Taiwan Camry factories for much cheaper.

[b0son]

Originally Posted by danzvtil

toyota arent building here because they can get a good deal on a camry wing mirror.They are here to make a profit.

although they don't, from the camry, do they? I thought it was a loss leader, boosts their profile here and gets people buying the rest of the range.

[fte50]

Originally Posted by Syndrome

That is the main question. With a lot of local based suppliers about to go to the wall in 2016/2017, will Toyota want to import all the parts for the Camry/Aurion just to screw them together in Australia?

Even if they decide to try, it wont be a long affair.
Very dark times for Australia's once proud manufacturing heritage. Sad.

[mif73]

Even if they stop making cars here, they may produce the 4 cyl petrol and hybrid engine here a bit longer as the new engine line was only opened this year and is full of flash new machinery, although they could ship that machinery to another plant.

[malazn mafia]

Originally Posted by blueoval

Could making a RWD Aurion be a possibility or is that wishful thinking on my part? I only say this due to the love of the RWD cars among the vehicle enthusiasts here.

Just thinking out loud

Maybe when Holden shuts its doors they could produce VF Toyota Lexcens with 2GR-FE Engines

[DanielXR8]

Originally Posted by Mighty Reds

They sell as much if not more than what Holden/Ford do combined so it will be interesting to see what excuses they come up with.

Excuses? They are manufacturing in the least protected car market in the world, with a government who plays idealogical games while manufacturing collapses around it.

I think the government needs to come up with an "excuse" why they shouldn't close.

[vztrt]

Originally Posted by b0son

Surely foreign-sourced components would be cheaper anyway?

Some stuff can't just be imported or work needs to be done in the country of build. Then there are suppliers that take the risk of holding parts and only sending what is required for JIT production.

[danzvtil]

Originally Posted by b0son

although they don't, from the camry, do they? I thought it was a loss leader, boosts their profile here and gets people buying the rest of the range.

Toyota loose money on every aussie camry exported, as for a loss leader, they make up for the loss from their imported cars.Which begs the question-that makes poor business sense-toyota will make money on EVERY car sold here if camry is bought in from Thailand under the FTA.

[mik]

Originally Posted by DanielXR8

Excuses? They are manufacturing in the least protected car market in the world, with a government who plays idealogical games while manufacturing collapses around it.

I think the government needs to come up with an "excuse" why they shouldn't close.

Perhaps Dan " We the people" are as much to blame for what has become of our manufacturing industry as anyone else ..... and deserve the govco we have, over the years we have ignorantly let pollies manipulate us, lie to us, bring in policy with zero consultation with the people, when they screw us blatantly we have no outrage ........... and constantly over the decades at voting time let them buy us off,
Even my best mate I'm sad to say after after I pointed out .............party X Blatantly lied to the country some years ago, his reply was yeah but they are going to give us dot dot dit da, etc ........... it is no wonder the country is rooted.

[Flat Top]

toyota will be the winners if ATS is just re allocated, but they are dead on the subsupplier base is at serious risk now? (ref Jac Nassers comments 6 months ago!)

The government gets what it wants.But Now it has a much more serious problem dollar wise and I dont think theve quite calculated this right?Its gonna cost $billions more!!

Still doesnt solve the fundamental issue .
Toyota need to build 120,000 pa to get the numbers right and the exchange rate needs to be at 0.88. To make export numbers stack up.
The hourly workers have to be pragmatic, its all about outdated work practices as well as $rate/hour. They have to get real as well!!!.
Governments have to realise the exchange rate is creating a Spaggetti economy like Nederlands/norway/etc etc , its their job to make sure the policy set up is such that this is managed!!!!(doesnt matter which party?)

The mining is gonna impact on the exchange rate for a while yet, but once those Yanks STOP printing money the exchange rate will adust itself more.

Something needs to happen by way of assistance to Toyota Now to get the exported camrys moving again rather than Thailand build.

A lot of Holden suppliers jumped ship a few years ago as Holden went offshore. (they have Gone??) if the exchange rate goes down as it will the cost of these imported partwould be higher??

just my humble opinion.

trev

[Brazen]

It will be interesting to see what happens with Toyota as they seem to operate a lot more holistically than other companies, they may see the positive benefit of keeping a manufacturing presence here as it benefits the sales of their imported cars.

Toyota is also a huge seller in Australia so may be wary of upsetting the apple cart.

If Toyota goes at least I know I'm done with brand new cars. I always could semi justify buying brand new knowing it helped local industry and jobs. But stuff it if I will be responsible for another import :-) I will keep the Falcon and Camry a long time then three or four year old cars for me from then on. I think when the last Aussie car factory dies, so will my passion for cars.

[stevz]

Originally Posted by Brazen

I think when the last Aussie car factory dies, so will my passion for cars.

If you have a passion for Camrys then your passion may as well be dead.