Toyota factory closure grinds entire industry to halt

Toyota's decision to shut its Camry factory in 2017 will bring the entire Australian car manufacturing industry to a halt after more than 100 years, and leave up to 50,000 workers in supporting industries out of a job, in addition to the 2500 at Toyota.

The world’s biggest car maker -- and the Number One brand in Australia for the past 11 years in a row -- will join Ford and Holden and become solely a vehicle importer for the first time since 1968, when it began building Corollas locally.

The Altona plant on the western outskirts of Melbourne is believed to be only the third factory Toyota has closed globally. The company says the decision was made reluctantly because Australia was the first country outside Japan where it assembled cars.

The media shy boss of Toyota Australia, Max Yasuda, said he was “devastated” by the news.

He blamed the decision on low tariffs, new Free Trade Agreements, the high Australian dollar and above average labour costs, just as Ford and Holden had said months earlier.

Privately, however, Mr Yasuda told his peers behind closed doors “If Holden goes, we’ll go”.

The die was cast late last year when unions won a Federal Court battle blocking Toyota’s request for a vote on proposed changes to Toyota worker conditions.

Mr Yasuda travelled to Japan late last year hoping to have the deal signed, to give the Altona factory a stay of execution from his Japanese hierarchy.

When Mr Yasuda turned up empty handed, the fate of Toyota Australia’s factory was sealed. It was only a matter of timing before the announcement was made.

“This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years,” Mr Yasuda said.

“While we have been undertaking the enormous task of transforming our business during the past two years, our people have joined us on the same journey, which makes it even more difficult to announce this decision.

“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.”

The global boss of Toyota, Akio Toyoda, arrived in Australia on a private jet late on Sunday night so that he could deliver the news in person.

Workers were informed at 4:30pm Monday, between the end of the morning shift and the start of the evening shift.

Mr Toyoda expressed his condolences when addressing the workers. The great grandson of the company founder said the company had explored “every possible option”.

Mr Toyoda was due to fly back to Japan Monday evening, just hours after the announcement and having spent less than 24 hours in Australia.

The formal decision to shut Altona came during a board meeting at 1:30pm on Monday Australian time but insiders have known for a fortnight, when the final feasibility study was concluded.It found there were no viable options to keep the factory alive.

“We did everything we could,” said Mr Toyoda.

Toyota lost an estimated $1.75 billion over the past 10 years -- despite an injection of about $1.2 billion in taxpayer dollars over that period.

“Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts,” said Mr Yasuda.

From 2017, Toyota will instead import the Camry from one of seven other factories that make the same vehicle.

This reporter is on Twitter: @JoshuaDowling