In a rare move for Toyota, the Japanese automaker announced today that it is axing 350 jobs at its Australian plant in Altona, Victoria, due to what the company describes as "unprecedented operating conditions". The job cuts will affect manufacturing and production workers as well as the firm's management.
Toyota Australia President and CEO, Max Yasuda, said the extremely strong Australian dollar, which has risen to its highest position in six weeks against the US dollar, along with the global economic crisis that saw reduced demand from the local division's main export markets such as the Middle East, are to blame.
"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," said Yasuda.
"In consideration of current and anticipated market conditions this action is necessary. It is not possible to maintain our workforce at its current size," he added.
The Japanese firm, which currently employs 4,683 workers in Australia, saw its manufacturing production levels drop from 149,000 vehicles in 2007, to 94,000 in 2011, and an expected 95,000 cars in 2012. The Altona plant produces the Camry and Aurion sedans.
"The reality is that our volumes are down. What we assumed was a temporary circumstance has turned into a permanent situation. This drop of 36% in just four years shows the scale of our challenges," said Yasuda.
Toyota stated that it continues to be committed to the Australian market and has plans to open a new plant to manufacture four cylinder and hybrid engines at Altona later this year.
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