In the wake of last month's announcement that Ford will cease automotive and engine production in Australia after 2016, many are wondering what the country's other automakers will do. Holden has already confirmed it will stay the course despite Ford's exit.

Much of the GM subsidiary's reason for sticking around has to do with a deal made last year between Holden and the Australian government. In order to secure a GM investment of $1 billion and a commitment to keep manufacturing in Australia through 2022, the government threw in an extra $215 million. According to Australia's Minister for Innovation and Industry, Greg Combet, the government is now in talks with Toyota for a similar deal.

Toyota operates one plant in Australia, the Altona manufacturing and engine plant in Victoria. The facility produces the Camry, Camry Hybrid and Australasia-only Aurion for both the local market and export. The report from GoAuto indicates that negotiations with the Australian government would include adding production of a third, all-new model at Altona, possibly the new RAV4, because it shares many parts with the Camry.

Mr. Combet did not say what amount the government would be willing to offer in exchange for an investment by Toyota and commitment to continue manufacturing in Australia, or whether it would be more or less than the Holden deal, but did confirm the talks were happening. Toyota has declined to comment, but is scheduled to release its 2012-13 financial results next week and could make an announcement then.

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    • 1 Second Ago
      TanTan Fukui
      • 2 Years Ago
      Cost to produce autos in Australia too high? With the cheaper Yen, it's probably best to ship it from Japan, or even the U.S.?
      • 2 Years Ago
      I think I now know why the Government didn't offer Ford the same deal. Dearborn would have told them some time ago that they were killing off their Australian Manufacturing. Yes, it is difficult to make cars here... doesn't mean it can't be done. ford just wants to use as little time and effort as possible whilst getting the best rewards it can, and their products show this ethos.
      • 2 Years Ago
      Why is Toyota/Ford leaving in the first place?
      Avinash Machado
      • 2 Years Ago
      Was no money offered to Ford?
        Leon K
        • 2 Years Ago
        @Avinash Machado
        Yes, Ford has got quite a bit over the years. Part of it was for the next model Falcon and Territory.
          • 2 Years Ago
          @Leon K
          Yes... it's called co-investment. The government always makes a return on it's investment. However all of what the government has tipped into Ford has been about as much as what it costs a car manufacturer to create a new model, or heavily update an existing one. This has been over the course of many years though.
      • 2 Years Ago
      This is hardly surprising. What I've heard from insiders was that Jaguar was already think of leaving the UK and build jags elsewhere only the government is keeping them by paying the difference of what they could have earned if they did build cars in other countries.
      • 2 Years Ago
      As I recall, the Australian government was talking to both Holden and Ford in 2010 about building their new compact cars in the country. Holden decided to build the Cruze locally, but imported the first model year\'s supply form Korea until the local factory was up to speed. Ford thought about it for a while, and then decided to switch production from Germany to Thailand. Holden (GM) is more committed to Australia than is Ford. If Henry was still alive today, he definitely wouldn\'t approve of the decision to shut down the Australian plants. He\'d find a way to keep them open.
        • 2 Years Ago
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