Australian Supplier Association Warns Of 33,000 Jobs Lost In Wake Of Producer Exits

Cameron Aubernon
by Cameron Aubernon
australian supplier association warns of 33 000 jobs lost in wake of producer exits

In light of Toyota Australia’s decision to cease all manufacturing operations in Australia by 2017, the Federation of Automotive Products Manufacturers is warning that as many as 33,000 jobs in the supply chain are at risk of following the automakers out of the country.

Just-Auto reports that the lost jobs include those in design, engineering, prototyping, R&D and assembly. FAPM said it was satisfied with the reasons behind Toyota Australia’s production exit, though president Jim Griffin warned of rough seas ahead:

“We may now not have time enough to transition. Our industry has the skills and know-how to be competitive but we need time and assistance to re-shape our businesses, to get new customers and diversify into new markets.”

FAPM chief executive also added that diversification, exporting and/or importing new business models outside of the dying local automotive industry may be the only way through the storm, even if most of their membership won’t make it out alive when the last Aurion and Commodore leave the assembly line in three years’ time.

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  • Doctor olds Doctor olds on Feb 14, 2014

    The term "Engineer" seems to be used loosely in OZ, not necessarily a rigorous 4 year college program graduate.

  • Doctor olds Doctor olds on Feb 14, 2014

    Just sharing experience with Aussie friends who call themselves "engineers" but do not have the education that actually requires. ;-) It is just an observation, not a comeback.

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    • RobertRyan RobertRyan on Feb 15, 2014

      @Big Al from Oz "We’ll invade Australia and take your resources" Are we talking about the Australian car industry or the US becoming a dictatorship? getting a bit off the topic.

  • Athos Nobile Athos Nobile on Feb 15, 2014

    Chaps, I think you all should read the link below, specially the Aussie team. http://www.abc.net.au/news/2014-02-11/llewellyn-smith-australian-disease-enters-its-terminal-phase/5251418 There are 2 charts and 1 number in that article that are chilling.

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    • Pch101 Pch101 on Feb 16, 2014

      @doctor olds "From my perspective it seems pretty clear from your arguments that the inside management was too busy blaming the unions instead of working hard to make cars worth buying." With GM, bad cars are always something in the past, if they ever built them at all. In any case, GM also had a consistent habit of complaining about benefits that it didn't bother to pay. Those obligations were allowed to pile up and were underfunded. The VEBA was later created to reduce and delay those obligations, and the subsequent bankruptcy eliminated even more of them. It's a bit like a guy who complains about his mortgage but doesn't send the checks to the bank. If it just sits on the balance sheet but doesn't get paid, only to be reduced later, then the burden is largely theoretical at worst.

  • Doctor olds Doctor olds on Feb 16, 2014

    @28cars-later- The article simply means that GM's engineering centers in Europe and Asia, where gas is expensive, had the lead for a large share of the vehicles being released at that snapshot in time. GM froze most product development during market collapse and run thru bankruptcy. The ATS, for example, was under development before I retired in 2008 but the freeze delayed the introduction.

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