Toyota Australia Is Cutting 100 Manufacturing Jobs From Victoria

Toyota plant in Altona / Getty

Toyota Australia has revealed plans to cut up to 100 jobs from its manufacturing plant in Altona, Victoria from the end of next month, in response to a drop in export orders.

Toyota said today that there would be no compulsory redundancies, with the exact number of job cuts determined by the number of volunteers.

The company employs about 2,500 people in its Altona manufacturing plant.

The target of 100 redundancies will reduce its Altona headcount by about 4%. Toyota said today that it would also reduce its production volume by about 8% to 431 vehicles a day, to match market demand.

About 70% of Toyota Australia’s total production volume is exported.

Toyota president and CEO said the following in a statement:

Everyone at Toyota Australia is working extremely hard to ensure our long term manufacturing future in Australia.

In the lead up to 2018 we need to reduce the cost of each of our locally built vehicles by $3,800. Although we have made progress, we are now seeing gaps in our plans that must be closed to secure investment for the next generation vehicle and to maintain our export program.

This decision making process has started, so we must show our parent company that we are not only achieving our targets, but that we have the relevant plans in place to achieve them right up until 2018.

This is why everyone at Toyota Australia is working incredibly hard to find new plans and initiatives to contribute to achieving our targets as we move towards being globally competitive.

Car manufacturers have struggled in Australia, due to a relatively high minimum wage and the recent strength of the Australian dollar.

Mark Skulley of the AFR reports that Toyota Australia COO Bavid Buttner “indicated that Toyota was looking for continued financial assistance from the Abbott government” in a media briefing today.

The Labor government previously pledged millions of dollars of assistance to Toyota and other car manufacturers but the Coalition plans to cut $500 million from the Automotive Transformation Scheme by 2015.

Industry Minister Ian Macfarlane met with Toyota Australia last Tuesday, but did not disclose at the time if Toyota had asked for more money.

Now read: Most Australians Think The Manufacturing Industry Is Declining And Government Help Can’t Save It: Survey

Follow Business Insider Australia on Facebook and Twitter

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.