We’ve all heard the news. Toyota is to end its vehicle and engine production in Australia by the end of 2017 and about 2,500 jobs are set to be lost as a result of this decision.
“We believed that we should continue producing vehicles in Australia, and Toyota and its workforce here made every effort,” said Toyota president Akio Toyoda.
“However, various negative factors such as an extremely competitive market and a strong Australian dollar, together with forecasts of a reduction in the total scale of vehicle production in Australia, have forced us to make this painful decision.”
Yet late last week Japan Today reported that:
Toyota has shifted into high gear, with the world’s largest automaker tipping a record annual profit after more than doubling its nine-month earnings to 1.52 trillion yen thanks to the yen’s sharp decline and surging sedan sales.
The buoyant results underscore a recovery not only for the Camry and Corolla maker but also for rival Japanese auto giants including Nissan and Honda.
The trio have been big winners over the past year as a sharp drop in the yen inflated exporters’ repatriated profits, further boosted by improved overseas demand in key markets including the United States and China.
On Tuesday, Toyota said it earned 1.52 trillion yen between April and December on sales of 19.12 trillion yen—propelled by a five-fold jump in third-quarter earnings.
It also boosted its fiscal year to March profit forecast to a record 1.90 trillion yen.
For your information, one yen is roughly about eleven Australian cents. That’s still a hell of a lot of money.
Perhaps the economists amongst us can explain why Toyota can’t spare a few yen to invest in Australia. To me it just doesn’t stack up.