Monday, February 10, 2014

AMWU: Car Industry Dies - Toyota Leaves in 3 Years - Recession Warning

The Australian Manufacturing Workers Union says the decision is devastating and could cause an economic recession.

"This decision will see thousands of jobs exit Australia - not only at Toyota directly but all the way down the supply chain," national AMWU vehicle secretary Dave Smith said in a statement.

"The magnitude of this decision in the community cannot be underestimated. We are looking at a potential recession all along the south-eastern seaboard."

Opposition Leader Bill Shorten says the closure is an "unmitigated disaster".

 "The car industry has died under the Abbott government - it's a disgrace," he said.

In December, following Holden's decision to stop making cars in Australia in 2017, Toyota warned that it was facing "unprecedented pressure" on its ability to continue.

At the time Prime Minister Tony Abbott ruled out giving the Japanese carmaker any extra taxpayer money.

He said the Federal Government wanted "Toyota to continue" and revealed he had personally spoken to Mr Yasuda.

Holden announced in early December that it would stop making cars in Australia by 2017 due to a "perfect storm" of poor economic conditions.

Its decision will put 2,900 Holden employees out of work - 1,600 from the manufacturing plant in South Australia and 1,300 in Victoria.

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