Feb 11, 2014

Toyota exit without an industry policy is economic vandalism

Toyota's decision to leave Australia in 2017 sounds the death knell for Australian manufacturing. Who is to blame?

Paddy Manning

Crikey business editor

Toyota’s decision to quit making cars in Australia from 2017 was an inevitable follow-on from Holden’s announcement last December. In global terms the industry was already sub-scale, making roughly 220,000 cars annually, and there were plenty of warnings last year that if Holden quit, Toyota would too.

It won’t be the last announcement of job cuts: the car industry employs some 44,000 people directly and many suppliers to Holden and Toyota will go to the wall. Richard Riley, president of the Federation of Automotive Product Manufacturers, last night warned this was “ground zero” for Australian manufacturing.

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39 thoughts on “Toyota exit without an industry policy is economic vandalism

  1. MJPC

    Thank you Paddy, you have said what has been missing in this whole sorry story. Abbott and his brigands are kidding themselves if they think this is going to introduce a brave new world of innovation and opportunity, it is just criminal and strategic negligence; they are traitors to the Australian proletariat.
    As for the carbon tax, the SMH had an interesting article yesterday by Michael West on protecting Australia’s gas supply from flogging it off to China without consideration of the domestic supply implications. Already power costs are rising. Interesting, the QLD power company Stanwell is mothballing the biggest gas powered station in the state to boot up an old coal fired station.
    Their reason: carbon tax (which, come July they won’t havew to pay), real reason (now) selling off gas to providors so they can flog it off to China. I am waiting till July when the CT goes and the cost of power does not fall the requisite 10%, the spin the LNP will have to generate will run 100 wind turbines.

  2. drmick

    Vandalism perfectly describes this Paddy.They don’t have a plan and they are stacking their daks that their business mates, doing the review, come up with something that doesn’t look like what it will be; A greedy grab, privatising cherry picked government assets, giving murdoch the abc and “wrecking” the NBN, putting us further into debt and leaving a steaming pile for Labour to clean up at the next election

  3. Rod

    Listening to Abbott this morning on the radio he clearly has no plan for manufacturing in Australia, had no clear idea as to what he was going to do and noted that his job when he was in opposition was to talk the country down.

    This government has no ideas, no leadership, no vision – only politics and old ideology that demonises and uses fear.

    Why aren’t we educating, building for the future and getting rid of the rorts and waste associated with middle class welfare, negative gearing, tax breaks for the wealthy, dodgy financial planners, car leasing etc etc. The only plan the LNP has it seems is to reduce the wages for those who can least afford it (child care and aged care workers for example) and further increase the wealth of those who don’t.

  4. Russ Hunter

    I couldn’t agree more. Abbott is a weird and confused political creature who has gotten himself and our country in a real mess.

  5. MJPC

    Don’t you all know that (as the Leader says) when one job goes, another is created; that the job created is some sub-standard wage in McDonalds is beside the point.
    To all those who voted LNP in the last election, you reap what you sow.

  6. Ghost PeterReith

    Can we also end the FBT rort now, too?

  7. Electric Lardyland

    Go on, I dare you lot to go!

    Come on, you bastards don’t have the guts to go!


    Err…………….well, it’s all the fault of the unions.

    Err………..and the carbon tax.

    And the ALP.

    And the ABC.

    And those illegal immigrants….err……Stop The Boats!

  8. Electric Lardyland

    Well, if the Coalition are still wanting to engage in sloganeering, here’s one that I think nicely sums up their industry policy. Let Them Eat Chocolate.

  9. CML

    MJPC – Well said!
    And Paddy is correct. The rAbbott and his motley crew are economic vandals.
    I have two nephews who work in the car manufacturing industry, and their futures are bleak, to say the least. But the LNP doesn’t care about the workers. Never did, never will.
    Pity the bogans didn’t listen before voting in the current government. What a mess, and we haven’t even had six months of these drongos yet!
    It can only get worse!!

  10. Timehhh

    This government is placing ideology ahead of the national interest. As Paddy points out, the obvious candidates for investment in ‘future’ industries (which are really ‘now’ industries), ICT and clean energy, are being systematically undermined by the Abbott government eager to appease its boosters in the fossil fuel industry and old media.

    The government seems determined to halt these emerging industries because they are disruptive to the old vested interests. They’re so busy trying to protect their mates in the fossil fuel and mining industries they haven’t figured out that the world is moving on.

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