Why did Toyota stop making cars in Australia?
After over 50 years of manufacturing vehicles in Australia, Toyota announced in 2014 that it would cease local production by the end of 2017. This decision was driven by a combination of factors, including the high costs of production, the small size of the Australian market, and the challenges posed by the strong Australian dollar.
The Decline of Australia's Automotive Industry
The Australian automotive industry has been in decline for several decades, with a number of major manufacturers, including Ford, Holden, and Mitsubishi, shutting down their local production facilities in the 2010s. This was largely due to the high costs of manufacturing in Australia, which made it difficult for these companies to compete with imported vehicles.
Toyota was the last major automaker to have a manufacturing presence in Australia, but the company ultimately decided that it was no longer viable to continue production in the country. The high costs of labor, energy, and other inputs, combined with the small size of the Australian market, made it difficult for Toyota to maintain a profitable operation.
Toyota's Decision to Cease Local Production
In 2014, Toyota announced that it would cease local production of vehicles in Australia by the end of 2017. This decision was made after the company had already invested heavily in upgrading its manufacturing facilities in the country, but it ultimately concluded that the costs of production were simply too high to justify continued operations.
- High labor costs in Australia, with wages and benefits for workers being significantly higher than in other countries where Toyota has production facilities.
- The small size of the Australian market, which made it difficult for Toyota to achieve the economies of scale necessary to remain competitive.
- The strong Australian dollar, which made imported vehicles more affordable for Australian consumers and put pressure on local manufacturers.
- The withdrawal of other major automakers from Australia, which reduced the overall size of the domestic market and made it harder for Toyota to maintain a viable operation.
After weighing these factors, Toyota ultimately decided that it was no longer feasible to continue manufacturing vehicles in Australia, and the company announced that it would instead focus on its import and distribution operations in the country.
The Impact on the Australian Automotive Industry
The closure of Toyota's manufacturing facilities in Australia had a significant impact on the country's automotive industry. Thousands of jobs were lost, both at Toyota's own plants and in the broader supply chain, and the closure of the company's operations had ripple effects throughout the industry.
The Australian government attempted to mitigate the impact of the closures through various support programs and initiatives, but the decline of the domestic automotive industry has been a difficult challenge to overcome. Today, Australia's automotive industry is largely focused on the import and distribution of vehicles, rather than domestic production.
Why did Toyota stop manufacturing in Australia?
At the time, the company blamed the "unfavourable Australian dollar", high costs of manufacturing and low economies of scale. Toyota said staff would drop from almost 4,000 to 1,300 people when it stops manufacturing and moves most of its white-collar workforce to the city.
Is Toyota popular in Australia?
Toyota did not sell fewer than 17,900 vehicles in a single month in 2024, with the lowest result recorded in January (17,903) and the highest in May (23,389). This makes Toyota Australia's top-selling new-vehicle brand for the 22nd year in a row, ahead of Ford, Mazda, Kia and Mitsubishi.
Why are Japanese cars so popular in Australia?
The automotive landscape in Australia is evolving, and Japanese imported cars are becoming increasingly popular. The allure of Japanese imports lies in their reputation for quality, innovative technology, and the variety of unique models that aren't available through Australian dealerships.
Were Toyotas ever made in Australia?
Australia was the first country outside Japan to produce Toyota cars, starting with the Tiara in 1963 at a factory in Port Melbourne, now the site of the company's corporate headquarters. Other famous car names to be produced in Australia by Toyota include Crown, Corona and Corolla.
Why are there so many white cars in Australia?
Car colours of 2024
"White is the easiest colour to maintain, both in cleaning and repairing. "White is generally the cheapest colour [to buy] — manufacturers will generally charge several thousand dollars [extra] for metallic colours. "From a resale basis, white is always an easy colour to sell."
Why did they stop making cars in Australia?
The car manufacturers stopped because the AUS market is to small to support it. And outside of market size they're to isolated to warrant the shipping costs. It was an unsustainable market to continue. The AUS government wouldn't have enough money to support 1 or 2 manufacturers.
When did Mitsubishi stop making cars in Australia?
2008
The company was established in 1980 and began vehicle manufacturing in that year, having taken over the facilities of Chrysler Australia. Australian production ceased in 2008 and since that time the company has been exclusively a vehicle importer.
Are any cars still made in Australia?
When it comes to car manufacturing, all local car production in Australia ceased in 2017. All vehicles sold in Australia are now imported. The last car to be manufactured in Australia was a red VF Commodore SS-V Redline, manufactured by Holden.
Why did Ford shut down in Australia?
End of Australian production
By about July 2009, Ford Australia had received permission from Detroit to add a new small car to its Falcon production line. On 23 May 2013, Ford Australia announced that it would leave the Australian market after 88 years due to uncompetitive manufacturing costs and lacklustre sales.
When did Nissan stop making cars in Australia?
1992
Other assembled models were Nissan Gazelle and Nissan Pulsar, which were supplemented by Nissan Skyline and Nissan Pintara in 1986. Nissan's automobile production in Australia ended in 1992.
