Omari Gates
Toyota Motor Corporation Australia Ltd. (TMCA) ended its 54-year run of manufacturing in Australia on October 3, 2017. The closure of the Altona plant put an end to the production of Toyota cars in Australia, which began in 1963. The decision to cease operations in the country was influenced by various factors, including the unfavourable Australian dollar, high production costs, and a highly competitive market. This marked a significant shift for the Australian automotive industry and resulted in the loss of thousands of jobs.
| Characteristics | Values |
|---|---|
| Date Toyota stopped making cars in Australia | 3 October 2017 |
| Number of years Toyota manufactured cars in Australia | 54 years |
| Number of people who attended the closure ceremony | 3,000 |
| Number of employees who took part in the 'DRIVE' employee transition program | 2,200 |
| Number of jobs affected by the closure | 2,500-3,900 |
| Total number of vehicles produced by Toyota in Australia | 3,451,155 |
| Number of cars manufactured by Toyota Australia at its peak | 15,000 per month |
| Year Toyota Australia was established | 1959 |
| Year Toyota Australia started manufacturing cars | 1963 |
| Year Toyota Australia Altona Plant was established | 1978 |
| Year Toyota retrenched 350 workers | 2012 |
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What You'll Learn
Toyota Altona plant closure ceremony
On October 3, 2017, Toyota Motor Corporation Australia (TMCA) ended its 54-year history of manufacturing in Australia. The Altona plant closure ceremony was attended by approximately 3,000 people, including current and former employees, suppliers, dealers, and officials from the Toyota Motor Corporation (TMC) in Japan.
The ceremony began with a tribute to the departing manufacturing employees and recognition of their contributions to the company's success in Australia. Toyota Australia President Dave Buttner acknowledged the employees' dedication, highlighting their role in establishing Toyota as Australia's leading car company and a trusted brand known for quality and reliability.
TMCA Chairman Max Yasuda announced the establishment of the Toyota Community Foundation Australia Pty Ltd during the ceremony, demonstrating the company's long-term commitment to the region even after the end of manufacturing. The foundation, starting with a $32 million fund, aims to provide educational support to children, particularly in the western Melbourne suburb where the Altona plant is located.
Akio Toyoda, TMC President, delivered a video message expressing his gratitude to all stakeholders who supported production activities in Australia. He assured everyone of Toyota's continued efforts to be a beloved automobile manufacturer in Australia, seeking even greater support from the community.
The Altona plant's closure marked a significant transition for Toyota in Australia, shifting its focus to sales and distribution. The plant was re-established as a training and product development facility, leveraging its accumulated knowledge and expertise to enhance Toyota's people, products, and services.
In the lead-up to the closure, TMCA actively supported employees through its internal 'DRIVE' employee transition program, offering career management and transition support services. This initiative ensured employees were well-prepared for their future beyond the closure, with many taking advantage of re-skilling opportunities provided by the company.
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Toyota Australia's employee transition program
Toyota Motor Corporation Australia Ltd. (TMCA) ended its 54-year run of manufacturing in Australia on October 3, 2017. The company's Altona plant, which produced a total of 3,451,155 vehicles, held a closure ceremony attended by approximately 3,000 people, including current and former employees.
In the lead-up to this closure, Toyota Australia launched the 'DRIVE' employee transition program to assist impacted employees in preparing for their future beyond the cessation of manufacturing. This program has offered a comprehensive range of career management and transition support services to over 2,200 participants.
The DRIVE program, an acronym for Dedicated, Ready, Individual, Vocational and Energised, has been designed as a one-stop shop to enhance employees' prospects of securing new jobs. It has empowered employees by helping them set individual career goals and plans, develop job skills, and pursue further education. Additionally, the program has facilitated career days, provided assistance in exploring other industries, and offered practical job-seeking support, including workshops on resume creation, personal marketing, networking, and interview techniques.
The initiative also extended beyond career support. The Toyota Community Trust, initiated with a $32 million endowment, was unveiled during the closure ceremony as a lasting legacy of the company's commitment to the community. This fund aims to provide educational support to children, particularly those facing economic difficulties, in the western Melbourne suburb where the Altona plant is located.
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The Toyota Community Foundation Australia
On October 3, 2017, Toyota Motor Corporation Australia (TMCA) ended its 54-year run of manufacturing in Australia. The Altona plant, where the closure ceremony was held, was attended by approximately 3,000 people, including current and former employees, suppliers, dealers, and officials from the Toyota Motor Corporation (TMC) in Japan.
TMCA Chairman Max Yasuda announced the establishment of the Toyota Community Foundation Australia Pty Ltd. during the ceremony, with the goal of contributing to the long-term development of the Australian region following the end of manufacturing. The foundation was set to begin with a fund of $32 million AUD, which would be used to provide educational support to children, particularly those facing economic difficulties and studying in disadvantaged educational environments in the western Melbourne suburb where the Altona plant was located.
Toyota has a long history of supporting the Australian community, and the Toyota Community Foundation works closely with local councils to address local needs. The foundation's key areas of focus include traffic safety, education, the environment, and local communities. It provides annual equipment and resource grants to local community groups, such as life jackets, defibrillators, and gardening equipment, and supports employees who want to get involved in community activities.
The Toyota Community Trust, a related initiative, aims to encourage and enable more young Australians to pursue further education and careers in STEM fields (science, technology, engineering, and mathematics). This trust provides support to teachers to strengthen their STEM teaching skills and helps students overcome barriers to studying STEM.
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Toyota's electric vehicle plans
On October 3, 2017, Toyota Motor Corporation Australia (TMCA) ended its 54-year run of manufacturing in the country. TMCA shifted its focus to sales and marketing functions, transitioning to a national sales and distribution company from 2018.
Despite being late to the EV game, Toyota has outlined ambitious electric vehicle plans for the future. The company aims to introduce solid-state batteries by 2027, which will offer ultra-fast 10-minute recharge times from 10% to 80% charge. Toyota plans to sell 3.5 million EVs annually across 30 different Toyota and Lexus model lines by 2030.
Toyota has already introduced several electric vehicles to the market, including the bZ4X, an electric crossover SUV built on the e-TNGA platform. The company has stated that there will be seven "bZ" models out of 15 BEV models launched globally by 2025.
In 2025, Toyota's plant in North Carolina will begin manufacturing automotive batteries for electrified vehicles. The company currently offers 32 electrified options and is committed to advancing sustainable, next-generation mobility through its Toyota and Lexus brands.
Toyota has also announced plans to launch 10 new EVs within the next three years. This includes a next-gen Lexus EV produced in Japan and a new electric SUV developed in collaboration with Subaru. Additionally, Toyota will build an electric version of its Hilux pickup truck in Thailand.
Toyota is increasing its commitment to electric vehicles with the aim of catching up with rivals and offering a range of new models and innovative battery technology. The company is investing in its battery production capabilities and plans to make 30 GWh of batteries in North Carolina each year by 2030.
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The impact on Australia's car industry
On October 3, 2017, Toyota ended its 54-year run of manufacturing in Australia. This decision had a significant impact on Australia's car industry and the economy, particularly in Victoria and South Australia.
Firstly, the closure of Toyota's Altona plant resulted in thousands of job losses. It is estimated that around 2,500-2,600 manufacturing workers lost their jobs at the Altona plant alone. However, the impact extended beyond direct Toyota employees. The closure also affected a sprawling network of supply chain workers, with an estimated total of 6,000 Victorians losing their jobs due to Toyota's exit. This included businesses that were heavily reliant on Toyota, such as Ballarat-based OzPress, which had to drastically downsize following Toyota's departure.
Secondly, Toyota's exit marked the end of Australia's car manufacturing industry as a whole. With Toyota being the last of Australia's major automakers to announce the end of production, the country lost its local car manufacturing capabilities. This was a significant blow to the economies of Victoria and South Australia, as the parts industry alone employed 18,000 people in Victoria and 6,000 in South Australia.
Thirdly, Toyota's departure also had an emotional impact on the Australian car industry. Toyota Australia Chairman Max Yasuda and President Dave Buttner both acknowledged the dedication and commitment of their employees, past and present, and the role they played in building Toyota into Australia's leading car company. Buttner assured departing employees that the company would continue to support them beyond the closure.
Finally, in response to the closure, Toyota established the Toyota Community Foundation Australia Pty Ltd. (also known as the Toyota Community Trust) with an endowment of $32 million. This foundation aims to provide long-term benefits to the Australian community, particularly focusing on educational support for children in western Melbourne, where the Altona plant was located. This initiative demonstrates Toyota's commitment to giving back to the community and leaving a lasting legacy in Australia despite ending its manufacturing operations.
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Frequently asked questions
Toyota stopped making cars in Australia on 3 October 2017.
Toyota stopped manufacturing in Australia due to the unfavourable Australian dollar making exports unviable, high manufacturing costs, and high competition in a relatively small local market.
The closure of Toyota's Australian plant resulted in the loss of thousands of direct and indirect jobs. It also marked the end of a once-vibrant auto production base in Australia, impacting over 150 companies and 45,000 people employed in the car and parts-making sectors.
Toyota launched an internal 'DRIVE' employee transition program to assist employees in finding new jobs. The program offered career management and transition support services, including setting individual career goals, jobs skills training, and job-seeking support.
