Toyota Motor Corp. will cease vehicle and engine production in Australia by the end of 2017 due to difficult local market conditions and the Australian dollar's rise against the yen, the automaker said Monday.
Toyota's decision comes after General Motors Co. and Ford Motor Co. announced last year their termination of production in Australia.
"Various negative factors, such as an extremely competitive market and a strong Australian dollar, together with forecasts of a reduction in the total scale of vehicle production in Australia, have forced us to make this painful decision," Toyota President Akio Toyoda said.
Toyota Motor Corp. Australia Ltd. will change into a sales company, but "Toyota's commitment to continue to provide great cars and services to the Australian people" will not change, he said.
The automaker also said it is considering reducing operations at Toyota Technical Center Asia Pacific Australia Pty. Ltd., its product development base in the county.