Toyota has announced it will cease making cars and engines in Australia by 2017.
A number of factors were cited including high manufacturing costs, and an extremely competitive market. Around 2,500 jobs are set to go.
The country’s carmaking industry has traditionally received billions of dollars in government subsidies. A recent national commission recommended that support should end and car companies bear the costs instead.
“Our people came together as one team and with the support of the suppliers and the government we gave everything to that effort. Unfortunately however we have now had to make the painful decision, the end of production of cars by the end of 2017,” Akio Toyodo, President and CEO of Toyota Operations, told reporters.
Last year Ford and General Motors said they would cease production in Australia. Toyota’s move effectively marks the end of the carmaking industry in the country.
Australian Prime Minister Tony Abbot had appealed to Toyota to stay. The leader of the opposition said the decision was an “unmitigated disaster”.