Toyota under pressure in Australia if GM exits image

Following GM’s announcement that Holden would stop producing cars in Australia from 2017, Toyota has followed suit and disclosed the decision places “unprecedented pressure” on its ability to make cars in the country.

The company said it would work with suppliers and the government to determine its next steps and whether it could continue operating as the only automaker after GM leaves. The world’s second-largest automaker said it was closing its Holden plants in South Australia and Victoria states, affecting 2,900 jobs, which would leave Toyota as the only automaker in the country.

“This will place unprecedented pressure on the local supplier network and our ability to build cars in Australia,” Toyota Australia said in a statement.

Additionally, an Australian labor union official said he thinks Toyota Motor Corp is also likely to close its production in Australia, after General Motors said it would end vehicle and engine manufacturing in the country by the end of 2017.

GM’s exit would make it “highly likely” that Toyota would also end its production in Australia, the Australian Manufacturing Workers’ Union official told reporters.

Via Reuters