Toyota Australia has announced local production will be terminated by the end of 2017, following a rumor which emerged late 2013.

Toyota Australia has announced local production will be terminated by the end of 2017, following a rumor which emerged late 2013.

On May 23 last year Ford disclosed plans to close manufacturing facilities in Australia by October 2016 while towards the end of the year Holden made a similar announcement by saying they will stop building cars in the land down under by the end of 2017. Now, Toyota is revealing Australian production will cease by the end of 2017.

Toyota Australia is motivating the decision by blaming high costs of manufacturing, an unfavorable Australian dollar as well as "low economies of scale for our vehicle production and local supplier base." As a result of this drastic measure, approximately 2,500 people will lose their jobs and there won't be any auto manufacturing left in Australia by 2018 which will have an estimated 1.5 trillion AUD hit on the local economy.

Aside from the 2,500 job losses at Toyota Australia, Ford's exit will affect around 1,200 people while Holden's retirement will axe 2,900 jobs.

Additional details are provided in the attached release published by Toyota Australia.

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Toyota confirms Australian production will be terminated by the end of 2017