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Australia, the specter of recession begins with cars

Of the three automakers operating in Australia, Ford has decided to stop production within the next three years, Holden will do so in the next two and Toyota could soon follow suit.

Australia, the specter of recession begins with cars

The Australian car industry is on the verge of the abyss, and after the local group Holden is preparing - as already announced in recent months - to close its factories in the country, even Toyota announces that it will be very difficult to continue producing cars Made in Australia. The main reason is the costs, which are higher not only compared to production costs in Asia but also compared to European ones. Nor is the recent fall in the Australian dollar enough to heal the differences. 

Of the three automakers operating in Australia, Ford has decided to stop production within the next three years, Holden will do so in the next two and Toyota could soon follow suit. The Labor Party rails against the premier over the Holden issue, accusing the government of stubbornly ignoring the company's requests for help. Bill Shorten, leader of the Labor Party, thunders from the opposition benches that "the Abbot government has led the national car industry straight into the most catastrophic car disaster in Australian history".

Called into question, Mr Abbot said he does not want to pretend to Parliament that this is not a black day for Australian industry; at the same time, however, he has pledged to do everything possible to ensure that Toyota does not abandon Australia, ie to do, as the opposition points out, what he has not done for Holden. What is feared is the domino effect: today Holden, tomorrow Toyota, which, in fact, has already communicated that the interruption of production by Holden seriously endangers the permanence of the Japanese company on Australian territory . The jobs that would be eliminated, including those of Ford and Holden, are more than 50.000, of which almost 29.000 in the State of Victoria, where the largest factories are concentrated. 

Dave Smith, secretary of the vehicle division of the Australian Industrial Workers Union, speaks of a 'tragic day' for workers in the sector, as Victorian State Governor Denis Napthine promises he will put enormous pressure on the government to get a substantial package of measures in favor of dismissed workers.


Attachments: Drive

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