A decline in export orders is blamed for production cutbacks as Toyota maps out a possible Holden-free future

Toyota will lop the workforce at its Altona plant by 100 employees as it winds back production due to a drop in export orders from the Middle East.

The voluntary redundancies are expected to take place from Friday November 29 as output of Camry-based models is trimmed back from 470 vehicles a day to 431. This reflects a reduction of the export volume that makes up approximately 70 per cent of Altona’s total production.

Toyota says it will not be making compulsory redundancies.

The company said the exact number of redundancies will be “determined based on the number of applications received and the skill-sets of those employees”.

Currently the workforce at the Altona plant comprises approximately 2,500 people.

Making the announcement today, Toyota Australia president and CEO Max Yasuda (pictured) said “As a manufacturer we are subject to fluctuating orders from our domestic and export markets, so we need to have the flexibility to respond to changes in conditions.

“We will now be working closely with all of our employees to ensure they understand why we have made this decision and support them during this difficult period,” noted Yasuda.

The voluntary redundancies come as local car manufacturers are put under the microscope by the new Liberal Government. Toyota nevertheless says it is confident of its Australian future, even if it has to operate as the sole local car-maker in a worst case scenario where Holden closed down its manufacturing facilities.

“Everyone at Toyota Australia is working extremely hard to ensure our long term manufacturing future in Australia,” Mr. Yasuda stated.

In mapping out future plans, Mr Yasuda said the company needs to cut unit costs dramatically.

“In the lead up to 2018 we need to reduce the cost of each of our locally built vehicles by $3,800.

“Although we have made progress, we are now seeing gaps in our plans that must be closed to secure investment for the next generation vehicle and to maintain our export program.

“This decision making process has started, so we must show our parent company that we are not only achieving our targets, but that we have the relevant plans in place to achieve them right up until 2018,” he said, which is when the next generation Camry is expected to arrive.

“This is why everyone at Toyota Australia is working incredibly hard to find new plans and initiatives to contribute to achieving our targets as we move towards being globally competitive,” said Toyota Australia’s CEO.

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