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GM Exodus Would Put Australian Auto Industry Near ExtinctionBack

ToyotaToyota cites ‘unprecedented pressure’ to produce cars

Australia’s century-old automotive industry is stepping closer to extinction after General Motors Co. joined Ford Motor Co. in deciding to stop making cars in the country.

Seven months after Ford announced it would pull out, GM said Tuesday its Holden unit will cease production in 2017. That prompted Toyota Motor Corp. to say the move will place “unprecedented pressure” on parts makers and questioned the merits of remaining in the country.

An appreciating local currency and falling import tariffs have driven down sales of Australian-made cars by almost half since 2007.

Source: Bloomberg

Posted by Leana Kell on 15/12/2013