Essay about The Australian Automotive Manufacturing Industry

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The Australian automotive manufacturing industry has experienced substantial structural change (“Productivity Commission”, 2014). This has been in response to changing market and competitive conditions overseas and in Australia, and reduced levels of assistance from governments (“Productivity Commission”, 2014). Following similar decisions by Holden and Ford, these factors have led to Toyota’s decision to abandon manufacturing in Australia by 2017. AMWU National Vehicles Secretary Dave Smith said “the decision would cost thousands of jobs, not only at Toyota but all the way down the supply chain” (“Devastating day”, 2014) and represents the “collapse of the automotive industry in Australia” (Novak, 2014). The purpose of this report is to…show more content…
The Australian automotive manufacturing industry has experienced substantial structural change (“Productivity Commission”, 2014). This has been in response to changing market and competitive conditions overseas and in Australia, and reduced levels of assistance from governments (“Productivity Commission”, 2014). Following similar decisions by Holden and Ford, these factors have led to Toyota’s decision to abandon manufacturing in Australia by 2017. AMWU National Vehicles Secretary Dave Smith said “the decision would cost thousands of jobs, not only at Toyota but all the way down the supply chain” (“Devastating day”, 2014) and represents the “collapse of the automotive industry in Australia” (Novak, 2014). The purpose of this report is to analyse and evaluate this decision by Toyota according to Shareholder and Stakeholder theories of corporate social responsibility and to identify the consequences of this decision along with responsibilities borne by Toyota, the Australian Government and the Australian Manufacturing Workers Union for these consequences. TOYOTA SHAREHOLDERS The high dollar and the substantially higher labour costs of automotive manufacturing in Australian compared to other countries such as China and Thailand have led to it not being viable for Toyota to continue to manufacture in Australia. Toyota’s decision to cease manufacturing in Australia will have consequences for numerous groups. However, according to Shareholder theory, as advocated by Milton
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