Toyota gone too if their export contact not renewed. abc report.

[EDManual]

I believe they said a camry is what $4000 dearer to make here than in their other plants. That means there's no chance. Sad day.

[GASWAGON]

Originally Posted by EDManual

I believe they said a camry is what $4000 dearer to make here than in their other plants. That means there's no chance. Sad day.

Wheres the report? Got a link?

[jpd80]

Here you go:

LINK
Toyota Australia currently loses about $2500 on each car it exports because of the strong Australian dollar, according to company insiders.

Last year (2012) Toyota Australia shipped more than 70,000 Camrys to the Middle East at an estimated loss of $175 million.
---------------------------------------

"Exports play a vital part in our balanced business model and we will do everything we can to continue to support our export customers," said a media statement from Toyota Australia Executive Vice President and Chief Operating Officer Dave Buttner.

Mr Buttner said the company was well progressed with a five-year plan to save $3800 in the production cost of each car, or about $400 million each year.

But the next round of cost-savings over the next three years are proving difficult to achieve, the company says.

From what Buttner is saying, it sounds like Australia's manufacturing costs are being compared
to another plant elsewhere that already has those savings built in.......

Looks like the more cars Toyota makes and exports, the bigger the loss it makes...

[pajoda]

On the back of Ford and Holden this was coming, the fact the parts suppliers are already decimated from Ford and Holden this makes it a certainty.

[GASWAGON]

Yep, I think Toyota said the final decision will be made in June from memory???

[EDManual]

Yep june is when Toyota global dishes or the contracts for the exports of camrys to the middle east.

[Joe5619]

I'm sorry, where is the topic that is in the heading? "Toyota gone too if their export contact not renewed. abc report."???. Eveything posted in here seems to be for another topic??

I assume you meant contract? What contract was lost & where is the ABC report?

[Sprint XR8]

Toyota's head office in Japan will decide this year whether to renew Toyota Australia's contract to make the Camry model for export, including to the Middle East.

Director of sales and marketing Tony Cramb says if it does not win that bid, it will have to join Holden and Ford and close its Australian manufacturing operations.

"That is a process that we're going through now. We're working with our suppliers and our stakeholders to determine whether or not that's possible," he said.

"In order to achieve that we need to earn the next generation of Camry with export, and that decision will be made this year."

http://www.abc.net.au/news/2014-01-0...future/5186308

[MITCHAY]

It really paints a picture of automotive manufacturing in Australia if you can sell the most cars above all else and still do so at a loss.

[BroadyFord]

Dowling has joined in, determined to sink the final boot into Toyota now that Ford and GMH are dead.

Also, unlike the other two, the unions will have played a lead role in the demise.

Toyota Corolla wins 2013 sales race

http://www.carsguide.com.au/news-and...81126_20140106

But Toyota Australian factory under pressure despite record new-car market.
Toyota has twice claimed publicly a decision on its manufacturing future is due by "the middle of the year". But company insiders say the announcement may be pushed back until later in the year and executives in Japan "are in no hurry" to give workers certainty over their future because the relationship between the factory floor and global headquarters has soured.

News Corp Australia understands that Toyota executives at head office in Japan were disappointed that Altona factory workers did not agree to proposed changes to overtime bonuses and conditions in December. Under the proposal, workers got to keep two pay rises this year -- 3.25 per cent in April and 2 per cent in September -- but had to agree to cuts to other bonuses and penalty rates, and adopt greater shift flexibility.

The two most senior Toyota executives in Australia, Max Yasuda and Dave Buttner, travelled to Japan in December hoping to have a signed contract from workers agreeing to the changes. But Toyota workers were blocked from voting after a Federal Court ruling, which Toyota has appealed.

The fate of Toyota's Altona factory now seems a formality given that the Federal Government has indicated Toyota will not get any extra funding, and workers are reluctant to agree to changes which the company says are crucial to saving $3800 from the production cost of each vehicle. If Toyota were to close its factory, it would likely happen in 2018, a year after Holden and when the current Camry is due to reach the end of its production cycle.

It would be a significant decision to close Altona given that Toyota has only shut two factories in the world: one in the US after the Global Financial Crisis, and a New Zealand assembly line in the 1990s.

Australia was the first export market for Toyota (with the privately imported LandCruiser) and the first country outside Japan where it assembled vehicles, starting with the Corolla in 1968.

Toyota Australia's executive director of sales and marketing Tony Cramb admits the situation is dire but insisted "the writing is not on the wall". But Mr Cramb said Holden's decision to end manufacturing in 2017 "puts unprecedented pressure on Toyota and makes it more difficult for us to be the sole manufacturer here in Australia".

Toyota's predicament comes as official figures show an all-time high of 1,136,227 cars were delivered in 2013 -- the sixth time in seven years to eclipse the 1 million mark -- but production of locally-made vehicles fell to their lowest levels since 1958. The results proved a mixed blessing for Toyota, which was market leader for the 11th year in a row and had Australia's top-selling car, the Corolla, for the first time ever.

But with 67 brands on sale in Australia (compared to 38 in North America and 42 in the UK) the new-car market is now so fragmented that there is not enough volume to justify local production. The Corolla led the 2013 market having sold less than half as many cars as the Holden Commodore did annually when it was market leader for 15 years.

Ford and Holden last year announced they were closing their manufacturing operations in 2016 and 2017 respectively because low tariffs and the strong Australian dollar favoured imported vehicles. It means Australian car buyers are spoiled for choice but it makes it impossible to manufacture locally because there is not enough domestic demand for any one vehicle, and exports are unprofitable.

Despite the booming market, sales of the locally-made Toyota Camry are down 8.7 per cent, joining the continued decline of the Holden Commodore and Ford Falcon, which both posted record 35-year and 53-year lows respectively.

Adding to the pressure facing the locally-made Camry, sales of regular passenger cars fell below 50 per cent for the first time ever. Meanwhile, sales and SUVs, utes and vans reached all-time highs, with more than 333,500 SUVs delivered and 204,500 utes and vans.

The traditional role of SUVs and utes are "being morphed" with passenger cars, said the chief executive of the Federal Chamber of Automotive Industries, Tony Weber. "I think the demarcation we've had historically in the market between passenger motor vehicles, light commercials and SUVs is starting to morph," said Mr Weber.

SUVs and utes had more safety features and were more car-like to drive than ever before, and offered "greater flexibility" for people's needs. There were four utes among the Top 10 sellers for the first time ever, but not one SUV made the cut, partly because there are now so many on sale; the Mazda CX-5 ranked 11th overall by a narrow margin behind the Ford Ranger.

The FCAI predicts 2014 will be another record year, with 1,145,000 sales. However, Mr Cramb said new-car sales in 2013 would have been higher if not for changes to Fringe Benefits Tax rules proposed by the former Labor Government.

"The FBT announcement made by the former government definitely slowed down business sales … there are many companies still just making their way back to normal purchases," said Mr Cramb. He said it took the market "a lot longer than we had anticipated" to recover form the botched plan that would have quadrupled the tax on company cars.

"Companies have extended leases, delayed purchasing decisions, and rather than coming back once … the new Government made it clear they were going to implement previous Government's policies, there was a skepticism in the market among the big fleet companies."

Fast facts

Toyota has sold more than 40 million Corollas worldwide, including 1.25 million in Australia since 1967.

The Corolla won the 2013 new-car sales race after swapping the monthly sales lead three times with reigning champion the Mazda3.

The Mazda3 led the first three months of the year before the Corolla landed its first win for 2013 in April, and then led the year-to-date tally for the first time in June.

In the end, the Corolla was the top selling car for eight months of the year, including the last four in a row.

Incredibly, it was only the Corolla's fifth-best result (record was 47,792 set in 2007), another sign of the fragmenting market that is killing local car manufacturing.

Korean car maker Hyundai ranked fourth overall but was the second-biggest seller of passenger cars in Australia in 2013.

Mercedes-Benz won the luxury car sales category, outselling BMW and Audi. The Mercedes-Benz C-Class sedan was the third best-selling medium-size sedan behind the Toyota Camry and Mazda6.

[jpd80]

Maybe News Ltd should import car reviews from Thailand and do away with the local staff, that would save them heaps.....

[Charliewool]

To a dill like me it reads........
"Dear Mr Abbott, please be advised that if you don't subsidise us poor japs that are building our pretty ordinary vehicles here in Altona, then we is up tents and away camels...
And we MEAN SUBSIDISE!!! Not piddles like GMH & Ford got each year from govco.. We want REAL bucks!!! Only one of us left now Mr Abbott..
Picture the next election Mr Abbott... The two remaining Australian auto makers GONE on YOUR watch!
Now we've gone public with our cry for help, are you going to tip in or what"

Or did I misread????

[BroadyFord]

Originally Posted by Charliewool

To a dill like me it reads........
"Dear Mr Abbott, please be advised that if you don't subsidise us poor japs that are building our pretty ordinary vehicles here in Altona, then we is up tents and away camels...
And we MEAN SUBSIDISE!!! Not piddles like GMH & Ford got each year from govco.. We want REAL bucks!!! Only one of us left now Mr Abbott..
Picture the next election Mr Abbott... The two remaining Australian auto makers GONE on YOUR watch!
Now we've gone public with our cry for help, are you going to tip in or what"

Or did I misread????

Sarcasm aside, unlike Ford and Holden, government money isn't the biggest issue here.

Toyota has repeatedly insisted that it needs to cut the cost of each car made at Altona by around $4,000 and that it has made significant progress in doing so but for the need to change worker conditions in order to improve productivity.

A new EBA was a key prerequisite for securing the necessary investment beyond 2018. The workers/AMWU failed the test. They will wear this.

[Charliewool]

"While your at it Mr Abbott, as well as our required subsidies... We'd be appreciative it if you also silence those whining bloody unions.... Cut em off at the knees.. You know, like the bikie laws?
Easy Mr Abbott... Ring Qld and get some tips?
Oh... One more thing Mr Abbott.. From the new financial year, we'd like to pay the poor petrified troglodytes that still exist building our crap in Altona... YEN instead of Aus. Dollars..
Got IT Mr Abbott?"

[Syndrome]

They are gone. Anybody who thinks otherwise hasn't got a good grasp of reality.

[mik]

If toyota cant make a buck in oz, the other 2 didnt have a chance in hell,
kudos to the three car makers for lasting as long as they have, and especially ford who had the most parts content in the local cars.

[Dr Smith]

Here's a thought, how about Toyota Aust. charge it's Mid. East Toyota customer more for it's cars. Has anyone thought that if hard nosed Toyota has been happy to export at a loss for so long then maybe it suits it's global financial P&L statement regardless of what is claimed in Australia. The Australian government actually will be better off with only Toyota remaining and receiving some form of assistance post 2016/17. They can spend less then what they currently do, and yet Toyota can receive more then what it does now as it could be the only manufacturer to remain.

[danzvtil]

Originally Posted by Dr Smith

Here's a thought, how about Toyota Aust. charge it's Mid. East Toyota customer more for it's cars. Has anyone thought that if hard nosed Toyota has been happy to export at a loss for so long then maybe it suits it's global financial P&L statement regardless of what is claimed in Australia. The Australian government actually will be better off with only Toyota remaining and receiving some form of assistance post 2016/17. They can spend less then what they currently do, and yet Toyota can receive more then what it does now as it could be the only manufacturer to remain.

thats the point, Toyota AU cant charge extra because China,Thailand and Taiwan all make the same model cheaper. The value of the Aussie $ doesnt help.

[Dr Smith]

Originally Posted by danzvtil

thats the point, Toyota AU cant charge extra because China,Thailand and Taiwan all make the same model cheaper. The value of the Aussie $ doesnt help.

The bigger point is that with Toyota's international price transferring abilities and known past history employing them who really knows what goes on.

[Joe5619]

Originally Posted by Dr Smith

Here's a thought, how about Toyota Aust. charge it's Mid. East Toyota customer more for it's cars. Has anyone thought that if hard nosed Toyota has been happy to export at a loss for so long then maybe it suits it's global financial P&L statement regardless of what is claimed in Australia. The Australian government actually will be better off with only Toyota remaining and receiving some form of assistance post 2016/17. They can spend less then what they currently do, and yet Toyota can receive more then what it does now as it could be the only manufacturer to remain.

The whole point is, why build something in Australia that can be built for 3.5K cheaper somewhere else. Regardless of transfer pricing that is a real 3.5K (per car) extra cost to the Toyota Global P&L that doesn't need to be there!!

[Bill M]

Mr.Buttner also stated that they are well on their way to achieving savings of $3800 per car. It is just the next round that is proving hard to meet.
They are also quoting the "high dollar" of 2012! The dollar is getting to it's lowest point since 2009. Hmmm.

Seems like we have many Dowlings on this forum determined to bury what is left!

[bobthebilda]

Originally Posted by Bill M

Mr.Buttner also stated that they are well on their way to achieving savings of $3800 per car. !

Yes, its a five year plan. And in 2018, they will close the australian operations, build them for $3800 cheaper somewhere else.

[Gobes32]

Sounds like Toyota want the unions to wear it on this one. The thing is, they wanted to change the conditions of the EBA when it is up for renegotiation in 18 months, why not just wait? Unless of course closure is imminent and you need to reduce your closure costs.

There is more to this than idiot Dowling is reporting. Yes, unions are being stubborn, but there is a lot of mistrust between Toyota and it's employees. Remember, Ford and Holden did not have to employ security guards when they had downbalances, Toyota did.......

[Bossxr8]

It's actually only 16 months, so it's not really that far away and they can re-negotiate legally. What they are wanting to do now isn't, and the reason why the courts ruled against them.

Toyota are absolutely trying to hammer the union at the moment and break them. They are ruthless. And they wonder why the employees are getting narky and fighting back. Some of the stories i'm hearing out of Altona at the moment have totally made me shake my head. Management are a discrace there. Bullying is rampant. Japan want Altona to be just like the Japanese servant and master culture and Australians just won't hack that.

[b0son]

Originally Posted by Gobes32

The thing is, they wanted to change the conditions of the EBA when it is up for renegotiation in 18 months, why not just wait? Unless of course closure is imminent and you need to reduce your closure costs.

The current EBA wont have been negotiated taking into account the closure of Holden (and possible Ford), and the effects this would have on local parts supply/pricing.

The market is changing for the worse and rapidly. The union would prefer to stick its head in the sand and pretend it's not.

[b0son]

Originally Posted by Bossxr8

Australians just won't hack that.

Let's hope they can hack unemployment...

[Gobes32]

Originally Posted by Bossxr8

Some of the stories i'm hearing out of Altona at the moment have totally made me shake my head. Management are a discrace there. Bullying is rampant. Japan want Altona to be just like the Japanese servant and master culture and Australians just won't hack that.

This^^^^^^

As I said, there is more to this story than is being reported. In the next ten years, everything unions fought for will disappear as we try to compete on a global level. Shift allowances and overtime rates are being targeted now, next they will try to scale back holidays and increase working hours. I am not trying to be a union alarmist, just trying to point out that our conditions are what make us uncompetitive, and much like the US, we will have to lose those rights and "perks" so that we can rejoin the world export trade and compete once more.

[Bossxr8]

Originally Posted by b0son

Let's hope they can hack unemployment...

They pretty much know it's coming anyway, so they have nothing to lose.

Government won't help them stay in Australia any more.

[b0son]

Originally Posted by Bossxr8

They pretty much know it's coming anyway, so they have nothing to lose.

True that. Even if they find other work, they'd be mad to take it. Redundancy payments need to be capped at a realistic amount....

[jpblue1000]

Originally Posted by Bossxr8

They pretty much know it's coming anyway, so they have nothing to lose.

What they have to loose is everything they have now.
Being made redundant gives them a payout for sure but also puts them on the job hunt, along with the rest of their industry. All of a sudden there is a massive excess of employees for scarce employment, massive job competition and employers will be able to offer bargain basement rates, Im estimating massively below their current rates and benefit offers. And a redundancy payment wont last forever, so the majority will have to find alternate employment. (my industry has seen 30% reduction in new salary down to the 'new norm' as the buble burst)
Staying put and helping keep the plant operational and making profit will have short term pain but may have long term gain as each employee will not be starting at the bottom of the pile again in new jobs.
Of course if it is Toyotas goal of leaving they are screwed!

JP