Thread: Toyota Australia

Originally Posted by Sparksdisco

I belive in adapt or die.

Australia clearly can not compete in the manafacturing sector so we need to adapt to survive.

100% agree

australia for the most part cannot compete on a global scale and change is needed.

The only reason they aren't profitable is that they aren't allowed to pay the workers Thai wage rates coupled with the current $AU. If you send your manufacturing expertise offshore then you run the risk of getting in the poo if the offshore interest withholds from you for whatever reason. Governments of any flavour regularly protect important industries so that the country maintains its capability in that area of expertise. The US heavily protects its farming. If you don't protect to some degree then you leave yourself vulnerable to other countries doing the wrong thing and holding you over a barrel. Toyota aren't dumb dumb's who can't run a business.

Sparks n eevo please understand.
We are competitive in manufacturing and in the case of steel are actually as cheap or cheaper than china. Problem is there is no fantasy level playing field. The chinese govt through its bonus system actually push the cost below what the raw materials and equipment costs to convert ore to steel. Even in oz labour is only 5% of the cost.
You tell me which is more economical? Sitting a steel mill close to the coal and shipping in the ore(or as originally planned building a sister mill in WA running full ships each way) or in china/ india/japans case shipping in both the ore and coal with the bulk carriers running back empty?
Is it cheaper or more expensive for Oz, E.U to use 20% less coal per ton of steel than chinese steel? How about environmental benefits? We have extremely low emissions whereas china had to use computer graphics to enable the fireworks to be broadcast.

Transfer pricing is another problem.

Toyota head office can price vehicles and parts to Australia at a level where Australia will never make a profit. So Aussie makes a loss, Head Office makes a profit that outstrips the Aussie loss and they pay/claim tax in the countries it is most favourable to do so.

Big fines have resulted from this type of behaviour, but it's very difficult to prove.