VACC response to Toyota pullout

VACC is disappointed to learn that Toyota Australia will cease automotive manufacturing in Australia by the end of 2017.

The news means that since 2008 when Mitsubishi ceased production in Australia, Ford, Holden and now Toyota have all announced that they too will stop making cars here.

While we hope Ford, Holden and Toyota continue to produce cars until their projected dates of departure, there is a very real possibility that car making will cease in Australia before 2017, and once it goes, it is unlikely ever to return.

Only recently, VACC had continued to argue that despite a need to reduce the so called 'age of entitlement', in cases where a manufacturing industry was important and strategic, such as automotive manufacturing, it was appropriate for the Federal Government to continue to provide financial assistance.

Unfortunately, the Government, advised by the Productivity Commission, has been steadfast in its stance against providing assistance to car makers and today's news is a reflection of that.

Toyota Australia's decision will not only have a huge impact on its 2,500 employees but on thousands of businesses and employees in the component parts sector. Many small businesses will be affected and we wait to see the impact on our sector, the repair, service and retail sector.

It's hard to see positives on a day like this, but VACC urges the Federal and State Governments to consider proposals which could provide opportunities for those workers who will lose their jobs. VACC has proposed an initiative to revitalise the LPG vehicle industry, including re-skilling automotive employees and re-fitting existing automotive facilities. The proposal barely rated a mention in the recent Productivity Commission's Position Paper, but we urge governments to re-consider this as it could provide some opportunities for the future.

We are also pleased Toyota will continue to employ thousands of people through its extensive dealer network and intends to import the Camry and Aurion vehicles beyond 2017, along with the entire range of Toyota passenger and commercial vehicles.