More companies will start cutting jobs after Toyota last week announced it would shut its Altona plant on October 3.
Toyota said about 2600 workers would lose their jobs, with the workforce to be cut from about 3900 to 1300.
The company, which started making cars in Australia in 1963, first announced in 2014 that it would stop manufacturing at Altona this year, but an exact closure date was not set.
The company plans to make 61,000 cars before closing, including 34,400 for export.
The Australian Manufacturing Workers Union estimates that 40,000 workers are employed by the wider automotive sector, including supply-chain companies.
Toyota Tsusho, which has plants in Altona and Laverton North, including a subsidiary at Laverton North, told Star Weekly there will be “considerable” job losses.
“That means we will be reducing the size of our business and the size of our workforce, because we are a key supplier to Toyota,” spokeswoman Ruth Anderson said.
“Basically, if we cannot continue that business any more, we obviously need to downsize.
“We have multiple sites and each will be downsizing in a different degree … I couldn’t tell you individually what the number of each employees are at each site and what the effect is on that.”
Toyota’s head office will be based at Port Melbourne, while its Altona site will become a training centre.
Toyota Australia president Dave Buttner said the priority in coming months is to support employees in the transition period.
Industry and Employment Minister Wade Noonan said the state government’s support package included $46.5 million to help supply-chain businesses and to retrain workers.
“We stand ready to assist our workers as they transition from manufacturing plants across Victoria,” Mr Noonan said.
Hobsons Bay mayor Sandra Wilson said the municipality remained an important industrial and manufacturing hub.
“We are working with other regional councils, as part of LeadWest, to maximise economic investment for the region,” she said.
LeadWest chief executive Craig Rowley joined the state government in calling on the federal government to support car-industry workers and help create jobs in the west.
