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Toyota to slow down production in Australia

Toyota has announced that it will be slowing down production at its plant in Melbourne plant over the next few months due to a drop in demand for export orders.  The plant has announced that it will be reducing the daily production from 470 cars to 431 due to the fact that in the past year vehicle exports have dropped by a sizeable 5,000 cars.

 The proposed reduction in the daily manufacturing has been decided to match the current demand. As a result of the slowing down of production at the Altona plant based just outside of Melbourne the company have said that they will be making up to 100 voluntary redundancies before the end of November to the 2,500 work force but that there would be no compulsory job losses.

Max Yasuda, CEO of Toyota Australia said “As a manufacturer we are subject to fluctuating orders from our domestic and export markets, so we need to have the flexibility to respond to changes in conditions. We will now be working closely with all of our employees to ensure they understand why we have made this decision and support them during this difficult period.”

Mr. Yasuda went on to say that “ Toyota Australia is facing severe operating conditions resulting in unsustainable financial returns due to factors including the strong Australian currency, reduced cost competitiveness and volume decline, especially in export markets.”

The news comes just months after car manufacturer s GMH (General Motors Holden) and Ford announced that they would be ending production in the country due to manufacturing costs. Toyota currently exports 70 %of its Australian manufactured cars to markets in the Middle East, and it has been reportedly losing money on these export sales over the last year or so. Toyota CEO Max Yasada maintained that the future loss of jobs were “vital if the company wants to move towards global competiveness.”


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