HOBSONS Bay’s biggest employer, the Toyota Altona manufacturing plant, has confirmed it intends to maintain its operations in Australia.
Holden and Toyota both insist there is still a place for local manufacturing despite Ford’s decision to shut its Broadmeadows and Geelong operations. But the future of the automotive parts chain in which the entire industry relies is less optimistic.
Holden and Toyota gave full assurances yesterday that Ford’s announcement of a $600 million five-year loss and subsequent abandonment of local manufacturing would not affect their standing.
Holden chairman and managing director Mike Devereux reinforced the company’s intention to continue producing cars at its South Australian manufacturing plant until at least 2022.
”We remain committed to working with both the government and the Coalition on securing the long-term future for Holden in this country,” Mr Devereux said.
”The fantastic VF Commodore is a key step in that future. We believe the VF will retain the Commodore’s rightful place as one of the best-selling cars in the country – it’s that good.”
Similarly, Toyota said its commitment in Australia was unwavering, confirming that planning was under way for the production of a new locally built Camry in 2017.
”The operating environment is extremely tough at this time, but Toyota believes that car manufacturing is an important contributor to the Australian economy,” Toyota Australia public affairs manager Glenn Campbell said.
”Toyota intends to maintain its operations in Australia.”
Toyota builds cars at its Altona plant for domestic and export markets and ”is now 15 months into a five-year transformation project [and] the objective of the project is to lay a solid foundation for future growth in Australia”.
Ford’s announcement has clouded the future of the local parts industry, which currently supplies Holden, Ford and Toyota with components ranging from windscreens to engine parts.
Prime Minister Julia Gillard tempered Ford’s decision by allocating $10 million in funding towards affected parts suppliers, alongside a further $2 million from the Victorian government.
Leigh Diehm, assistant state secretary of the Australian Manufacturing Workers Union, said despite the new funding, the future of the sector remained up in the air.
”We have grave concern for the auto components industry,” he said.
”It’s a little too early to tell at the moment, but we’re really concerned about it.” The auto components industry not only supplies Ford, but also Holden and Toyota.
The local auto industry has withered under toughened trading conditions during the past decade, with sales of locally produced cars falling by nearly 110,000 annually between 2002 and 2012.
The demise led to Mitsubishi pulling the pin on its Australian manufacturing operations five years ago.
Ford has also borne a large brunt of that decline, with its production almost halving from 74,613 local cars sold in 2002 to just 34,415 last year.
Toyota has fared significantly better, with a 9 per cent drop in locally manufactured cars between 2002 and 2012 – though its base figure of 39,540 cars wasn’t nearly as vulnerable as Ford or Holden during the same period.
Toyota opened a new $330 million engine production plant for its locally built and exported cars in December last year.
The company announced earlier this week that it would add a further 140 temporary jobs to its Melbourne plant, due to an increase in export demand for the locally produced Camry Hybrid.
– with David McCowen
