Toyota shutdown: Bill Shorten says Australia's car industry could have been saved

Updated

Federal Opposition Leader Bill Shorten says the demise of Australia's car making industry was not inevitable.

On Monday, Toyota announced it would stop manufacturing cars in Australia by the end of 2017, joining Ford and Holden in withdrawing production from the country.

Around 2,500 Victorian Toyota workers will lose their jobs, while the loss of the wider automotive industry will put tens of thousands more jobs at risk.

Mr Shorten told ABC's 7.30 program that Toyota's withdrawal was not a foregone conclusion but a consequence of the Coalition Government not being able to convince Holden to stay in Australia.

"All of a sudden, all the car component makers (in Australia) for Holden don't have enough work," he said.

Mr Shorten says government subsidies for car makers are essential for keeping manufacturing alive.

He rejected that the withdrawals were just an example of the markets at work and the high cost of making cars in Australia.

"I don't accept that," Mr Shorten told 7.30.

"In 13 countries around the world who actually make a whole motor car, and we're one of them, every government sees it is in their national interest [to provide subsidies].

"That's what interests me, what's good for the nation, to provide some form of subsidy to their car industry.

"Australia subsidises its car manufacturing in the order of about $17 (per car), whereas the Germans do it at about somewhere between $65 and $90 and the Americans, $250."

Key facts: carmakers exit Australia Toyota Started Australian manufacturing in 1963

Will close by 2017

Employs more than 4,000 people Australia-wide Holden Began as an Australian saddlery business in 1856

To close Australian operations in 2017

Almost 3,000 to lose their jobs Ford Opened in Australia in 1925

To close Australian operations in 2016

Closure to cost 1,200 jobs

Mr Shorten says the end to Australian-made Toyota cars "became inevitable, I suspect, once the Abbott Government got elected".

In December, Prime Minister Tony Abbott ruled out providing extra government assistance to Toyota after the car maker flagged "unprecedented pressure" on its ability to continue in the wake of Holden's announcement to withdraw by 2017.

Toyota and Holden announced end dates to manufacturing in Australia during the current Coalition Government, but Ford made its announcement during Labor's last term.

Mr Shorten would not confirm whether Labor would have kept subsidies flowing to car makers but said there would have been a "transition" that would see the industry survive, at least in the short-term.

"We would've worked on a transition which would've seen this bad news avoided," he said.

"And even if it wasn't possible in the long-term to avoid it, there's a big difference between Labor and Liberal; We won't stop fighting for people's jobs until we've turned over every rock and we've tried every trick."

Toyota blames high dollar, low economies of scale

Toyota Australia president and chief executive officer Max Yasuda and Toyota Motor Corporation president and chief executive officer Akio Toyoda broke the news of the end to manufacturing to employees at the company's Altona plant, in western Melbourne, on Monday afternoon.

Mr Yasuda blamed the "unfavourable Australian dollar", high costs of manufacturing and low economies of scale.

He also cited increased competitiveness due to current and future free trade agreements as factors that have made it "not viable" to continue making cars.

"We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia," Mr Yasuda said.

"Although the company has made profits in the past, our manufacturing operations have continued to be loss-making despite our best efforts."

Macfarlane says Government could have helped 'if we were given the time'

Industry Minister Ian Macfarlane says he is disappointed but recognises Toyota had a business decision to make.

"The announcement today by Toyota Australia is an extraordinarily significant day for Australian industry. Australian industry will never be the same," he said.

"I always felt that if we were given the time we could put in place a plan to ensure that Toyota did continue.

"Its situation was entirely different to that of Holden and Ford - Toyota was exporting more than half its production."

Australian Manufacturing Workers Union (AMWU) national secretary Paul Bastian told Lateline that Toyota's pullout represents the Government refusal to support investment in Australia.

"There's not a car on the road here or in any other country that doesn't receive some form of subsidy, be it co-investment or other form of industry assistance, from their governments," he said.

"We had a quite clear message sent to Holden and Toyota prior to the election, that the Government would cut $500 million from the Automotive Transformation Scheme - a clear signal that they would not support the industry past 2017."

Speaking after the announcement on Monday, Prime Minister Tony Abbott said "nothing we say or do can limit the devastation that so many people will feel at this point".

"The important thing to remember is, while some businesses close, other businesses open, while some jobs end, other jobs start," he said.

"There will be better days in the future."

Victorian Premier Denis Napthine released a statement saying he was "extremely disappointed" by Toyota's "sudden decision", adding the state would be asking for federal assistance to deal with the impact of the job losses.

Mr Abbott and Mr Napthine will meet on Tuesday to discuss help for retrenched Toyota workers.

Map: World motor vehicle production by country, first six months of 2013. Source: World motor vehicle production by country, first six months of 2013. Source: OICA

Topics: manufacturing, industry, business-economics-and-finance, federal-government, government-and-politics, altona-3018, vic, australia

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