Toyota Looking For Government Cash To Help Sustain Australian Operations
Australian media is reporting that Toyota is next in line for some government cash, following Holden’s deal with the government to keep production of the Commodore and other models in Australia.
Toyota currently builds the Camry and Aurion (a V6 powered sedan based on the Camry, pictured above) at a factory near Melbourne, and a deal with the government is said to bring about a third model, likely the RAV4. Toyota’s Australian division head didn’t hesitate to re-affirm the company’s commitment to Australia, stating that they would remain in the country “indefinitely” and were taking a “long-term” view of things, even as rival firms panic about unfavorable exchange rates.
Local car production has been a money-loser for Toyota, with Australian outlet Go-Auto reporting a $160 million loss over the last three years. If Toyota’s deal is similar to Holden’s, Toyota will have to pony up a lot more cash on its own – with GM contributing $1 billion to keep production running until 2022.
More by Derek Kreindler
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Toyota didn`t get any money from the Japanese Government to keep a lot of their manufacturing in Japan which was/is just as high a cost location. This would suggest that the home location of a company does matter.
Wasn't Toyota's Australia chief bragging just a couple of weeks ago about how he didn't need any government cash, unlike certain other automakers (*cough* Ford and Holden *cough*) who were looking for handouts?
"Goshdarn it! It costs money to run a factory!" So muttered Akio, emerging from the shadows with a crutch under one armpit, his other hand rattling a tin cup with only two meager loose coppers inside banging against each other. Bowing his head in shame he faced Gillard. "I desperately need a new paint booth. Can you help?"