Summary:
Toyota to end car production in Australia by 2017, BBC News,
February 10, 2014. Toyota company planned to end its cars and engine production
in the end of 2017. This is similar with last year Ford and General Motor’s Holden
planned to stop producing car in Australia. One of the first reasons the
company attributed is due to high manufacturing cost in the market. Toyota
president – Akio Toyoda said that they really wanted to continue producing cars
in this nation as the workforce here made every effort. However, there are so
many negative factors that force them to give out a painful decision such as
extreme competitive market together with forecast of reductions in car-making
in Australia. It is also believed that about 2500 people will lose their jobs
by the time the company quit. The company’s final decision has come although
there were appeals from Australian Prime Minister Tony Abbott. The other reason
that was attributed is the national commission decided to end financial support
for car-making company and these companies should cut their costs instead. Last
year, the company had a dispute with Australian car plant workers due to some
proposed changes in workers’ contracts. The company demanded to change their
overtime requirements as well as the removal of allowances for training of
first-aid officers and workers who make blood donations. In December last year,
they decided to appeal against the Australia’s Federal Court which blocked a
vote on their contractual changes. One Toyota spokesman later said that they
will not withdraw the appeal as the company believes that the contract has not
violated any laws.
Australian Prime Minister Tony Abbott has appealed to Toyota to stay in the country
Opinion:
In my opinion, the moving out of Australia of Toyota company in cars
production is an inevitable outcome. They failed to negotiate with national
commission about subsidy so they do not have any other option. This outcome
would make a huge economic recession. First of all, it would have a strong
effect on thousands of people. Many of them certainty would experience
uncertain future employment. This would make unemployment rate in Australia
rise higher. Moreover, it might have negative effect on other aspects. For
example, for people who want to buy a new Toyota car, they would have to spend
much more money to afford it because they have to pay more tax than usual.
Lastly, road support and container shipping would also be affected adversely
since there would be less Toyota automobiles in the market in the future.
Toyota is one of the last remaining carmakers in Australia
Question:
1. Do you think that
the Australia National Commission stop supporting car-making manufacturer is a
right decision ?
2. What could Toyota
do in the future to maintain its sale in the Australia market when they no
longer produce cars in this nation ?
References:
Toyota to end car
production in Australia by 2017, February 10, 2014. Retrieved from
http://www.bbc.com/news/business-26114894
Photos Retrieved from
http://www.bbc.com/news/business-26114894
1. Do you think that the Australia National Commission stop supporting car-making manufacturer is a right decision ?
ReplyDeleteWe do not believe that it is a ethical choice, but from a business perspective it is the right choice. It is business, and if the market does not call for it.
2. What could Toyota do in the future to maintain its sale in the Australia market when they no longer produce cars in this nation?
Toyota just needs to produce cars with less available options. For example, just have a base model and a luxary model. Do not involve to many options such as base, middle, luxary, and sport. This confuses the customer and gives to many choices for the company to clsoe sales.
1.that is was bad decision they made ,because the impact are on they are country and the population ,it's lost economically example:unemployment , tax decreasing
ReplyDelete2.toyota to maintain it sale in sale in the australia market when they no longer produce cars in this nation , i think they will use the import system toyota will produce cars and import in australia but it will expensive australian citizen
ReplyDelete