Japan auto parts suppliers intend to withdraw from Australia

According to reports, with Toyota’s recent announcement that it will phase out production of automobiles in Australia by the end of 2017, several Japanese component manufacturers have also stated that they will gradually narrow down or even withdraw from production in Australia.

Denso, which manufactures automotive air-conditioning and dashboards for Toyota in Australia, employs about 400 people and plans to phase out supporting production in the future, maintaining only sales in the aftermarket. Toyota Boshoku, which produces car seats in Australia for Toyota, also employs about 400 employees. It plans to study the resettlement of existing employees while gradually stopping production.

At present, apart from vehicle manufacturers, Australia has about 150 major automotive-related companies, covering automotive parts, tool manufacturing, and engineering design. With the reduction of automobile production in Australia in recent years, the employment of the automotive industry has decreased from 60,000 in 2008 to 50,000 in 2013. Following the announcement last year that General Motors (GE) and Ford announced that they have suspended production in Australia, Toyota’s exit decision will further crack down on Australia’s auto-related industries.

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