In the last month Toyota has been named the top selling car manufacturer in the world and the highest ranked brand by American consumers. But even those at the top aren't immune to bad news. The company announced today that it'll stop manufacturing vehicles in Australia in 2017. This comes as Australian manufacturer Holden and Ford have made similar announcements.
High manufacturing costs, low economies of scale, increased competitiveness, and the "unfavorable" Australian dollar were cited as reasons for the planned shutdown. In other words, Toyota isn't making enough money. D'uh.
Local politicians and unions are worried that Toyota and other manufacturers shutting down their plants will devestate those directly and indirectly involved in the industry. Toyota alone has 4,200 employees in its factory. The Australian Council of Trade Unions estimates with the plant gone, 50,000 jobs and $18.76 billion will be lost in the local economy.
At least they have a few years to try and figure something out.