Toyota's manufacturing future decided by June 2014

[BroadyFord]

Dowling is raising the white flag.

Toyota struggling to cut costs to meet reduction targets

http://www.news.com.au/business/comp...-1226765373891

TOYOTA Australia's manufacturing future will be decided in "the first half of 2014", giving the company little time to achieve drastic cost-reduction targets, a move which threatens to grind the entire industry to a halt.
The revelation comes as Toyota admitted for the first time that Holden's factory closure would make it more difficult to maintain its Australian operations.

"If Holden were to leave it would be very difficult [to achieve cost savings from parts suppliers]," the executive director of sales and marketing at Toyota Australia, Tony Cramb, told Australian media at the Tokyo motor show. "I'm not saying it's impossible, I'm just saying it makes it far more difficult.

"If Holden goes … it would be more difficult for suppliers [to cut their production costs].

A day earlier, the global CEO of Toyota, Akio Toyoda, and the executive vice president and member of the board of Toyota, Nobuyori Kodaira, told Australian media in Tokyo that supplier costs were key to the survival of the Altona factory.
Toyota's June 2014 deadline, revealed overnight, is earlier than had previously been forecast.

It means Holden and Toyota could announce factory shutdowns within months, and bring an end to more than 90 years of automotive manufacturing in Australia.

"The next-generation Camry decision gets made in 2014, probably in the first half of 2014," said Mr Cramb.

"We have to show them [Toyota Japan] the plan that they are convinced we can achieve in order to become globally competitive [compared to other Toyota factories which also make the Camry]."

Mr Cramb was referring to an ambitious target to slash $3800 - or about 15 per cent - from the manufacturing cost of each Camry it builds, a target widely regarded by industry insiders as too high to meet.

It now seems the livelihoods of 2200 factory workers employed on the Toyota production line in Altona on the outskirts of Melbourne are under the same cloud as the 1700 factory workers employed on the Holden production line in Elizabeth near Adelaide.

In addition, the jobs of about 6000 workers in South Australia and 18,000 workers in Victoria, who are employed at parts suppliers, are also in grave danger.

Toyota and Holden are facing critical internal deadlines set by their parent companies, which are in the process of allocating investment in factories to build new generation cars beyond 2016.

The lead times are so long because it takes at least three years to ramp-up production of all-new models.

A day earlier, Mr Kodaira said: "In Australia currently we are having a difficult situation. Because this is a business we need to have economic viability.

"In order to continue the manufacturing there, we are cooperating with our suppliers on activities such as rationalisation and also cost reduction. We definitely think those activities are necessary."

Mr Toyoda, the great grandson of company founder Sakichi Toyoda, said: "We have a very long history in operating in Australia. So going forward, working closely with our suppliers in Australia, we would like to aim at achieving sustainable growth."

Last month Toyota Australia said it 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 said.

Toyota Australia's Altona facility on the outskirts of Melbourne is one of nine factories where the Camry is made, including two in North America and one each in Japan, China, Russia, Thailand, Taiwan and Vietnam.

[Dr Smith]

See, we've got it all wrong, what we should be doing is hurrying up the growth in living standards of the Thai, Chinese, Koreans and while we're at it the Bangladeshi's, Indonesians and any other low labour cost country so that when it nolonger becomes cheaper to build there the large corporates will actually have to choose a country where it's nice to live instead of cheaper to build.

PLUS...maybe Toyota Aust. could sell at a reasonable profit to it's overseas divisions instead of screwing it' staff..

[jamies]

In the grand scheme of Toyota, Toyota Australia is only a tiny market.. when you go overseas to Asia you realise how big Toyota is.. And as for trying to hurry up the growth of poorer country's how do you propose the governments do that ?

[GASWAGON]

Bloody hell thats ALOT of jobs on the line.....At least Toyota are admitting the business is not viable and will make a proper decision next year unlike Holden screwing everyone around.

[Flat Top]

turkmenistan is looking to make cars for export????maybe Toyota can try their luck there?? at the end of the day if they are smart they will catch a lot of falcon customers without really doing much?

if the government changes the way they incentivise local OEM manufacturers by encouraging exports (presumably by raising import duty in some way) the local OEM manufactures can then use import offsets against exports. (simple really!! and no real cost as the 65 brands keep prices under pressure)

[GASWAGON]

FFS sake when are the media and government going to call a recession in this country?

[pottery beige]

Originally Posted by EF_6

FFS sake when are the media and government going to call a recession in this country?

ffs do you ever post anything positive

[GASWAGON]

Originally Posted by pottery beige

ffs do you ever post anything positive

Not really......Most of the news is bad these days.

[Brazen]

I reckon they have a future, they only started up their 2.5 litre engine factory about 8 months ago.

My current generation Camry Hybrid has hit 10months and sitting on 20,000km. Really loving it, lifetime average is 5.9 litres per 100km. It's big, roomy and half decent features (reverse camera, proximity key, 8 way electric driver seat). Drives well and handles well and plenty of power. It doesn't have the looks and the beautiful ride/handling balance of a Falcon though (but not many cars do).

I recommend taking a look at one and help keep Aussies in jobs if you not going to buy a Falcon.

[mik]

Originally Posted by Dr Smith

See, we've got it all wrong, what we should be doing is hurrying up the growth in living standards of the Thai, Chinese, Koreans and while we're at it the Bangladeshi's, Indonesians and any other low labour cost country so that when it nolonger becomes cheaper to build there the large corporates will actually have to choose a country where it's nice to live instead of cheaper to build.

PLUS...maybe Toyota Aust. could sell at a reasonable profit to it's overseas divisions instead of screwing it' staff..

We have been helping out the low labor cost and 3rd world countries for years at the expense of our manufacturing/ industry as drawn up into UN agreement by killing of an estimated 30% worth, you can thank our politicians on both sides for signing us up to that one without any consultation .

[Auslandau]

Originally Posted by EF_6

Not really......Most of the news is bad these days.

No? Not all of it. Depends on how you look at things and where you are looking!

Look up the term recession and you will work out why there isn't one. It isn't up to any government to call it. It is something that just happens. You cannot be in a recession with growth in the positive ..... and it doesn't matter where the growth is from.

Now smile

[Wretched]

Originally Posted by Dr Smith

PLUS...maybe Toyota Aust. could sell at a reasonable profit to it's overseas divisions instead of screwing it' staff..

The same Toyota that sheltered their staff during the GFC crisis not letting go of any one but absorbing the costs? The same Toyota that was screwed over by 1/3 of their staff in 2012 that pulled a sickie to have a long weekend during Australia day?

Yeah I call that screwing your staff.

[GASWAGON]

Originally Posted by Auslandau

No? Not all of it. Depends on how you look at things and where you are looking!

Look up the term recession and you will work out why there isn't one. It isn't up to any government to call it. It is something that just happens. You cannot be in a recession with growth in the positive ..... and it doesn't matter where the growth is from.

Now smile

No disrespect Aus...But we have Ford, Holden AND Toyota talking about shutdowns..... I'm sorry but things aint lookin good mate!

FFS have you watched the Doco on Detroit lately?

[Bossxr8]

Dowlings done his hatchet job on Ford, Holdens is working nicely, now onto Toyota. Is it just me or will he genuinely be happy when we have no auto manufacturing at all.

I just don't understand how anyone with an automotive interest can be happy about this. What a freakin' tool.

[flooded one]

Originally Posted by Bossxr8

Dowlings done his hatchet job on Ford, Holdens is working nicely, now onto Toyota. Is it just me or will he genuinely be happy when we have no auto manufacturing at all.

I just don't understand how anyone with an automotive interest can be happy about this. What a freakin' tool.

I used to always think Holden payed him off a few years ago????

guess I was wrong lol

[Struggo]

Originally Posted by Bossxr8

Dowlings done his hatchet job on Ford, Holdens is working nicely, now onto Toyota. Is it just me or will he genuinely be happy when we have no auto manufacturing at all.

I just don't understand how anyone with an automotive interest can be happy about this. What a freakin' tool.

The bloke is an incompetent fool, whom offers the industry nothing but takes its rewards.

[xbman//]

hey i work at toyota and i can tell you guys they dont want to be hear and that the 3800 they want to save on each car will only have them breaking even now how is that anyway to run a business ? plus many as may as 70% of team members have said to toyota they can keep the 5% pay rise next year to help the company but toyota aren't interested . at the moment they are trying to change our WPA early so they have the ability to discipline and the terminate employees in a quicker and more officiant way these guys just want to fire the average worker and hire fixed term temps for 3 years at 20 bucks an hour

[CyberWasp]

Wouldn't it be ironic if Ford is the last manufacturer to leave when they said they would be the 1st of the 3.

[jpd80]

I recon all will leave at the same time and Abbott will **** his pants.