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Ken Gratton29 Apr 2015
NEWS

Aussie Camry's final chapter

Toyota shows how it's done, marking the beginning of the end for the company's manufacturing odyssey in Oz

There are five stages of grief, we're told by the late psychiatrist Elisabeth Kübler-Ross. And of the three remaining local manufacturers, only Toyota appears to have reached the final stage: Acceptance.

The company's line-off ceremony at the Altona plant this morning felt more like an evangelical gathering, praising the coming of the new Camry; yet at no stage did the company or the visiting dignitaries taking part back away from the 'known known' – that production at this plant will cease in 2017.

Despite the attraction of building a cost-effective facelift of the current car, the Altona plant has geared up for what is a major facelift instead. Only the roof is carried over from the previous model's sheet metal. It's testament to the determination of the company that production at the Altona plant will end on a high note.

"This vehicle is a significant change for a mid-life model," said TMCA president, David Buttner. "Normally, about this stage of the model life we might change the headlamps and colour of the interior trim..."

Furthermore, Buttner revealed that within a week of production commencing for the new model (just after Easter), Altona had achieved the same level of build quality as with the superseded model. Usually it takes up to two or more years for a new model to reach the same quality standard as its predecessor. Coming so soon after production of the new Camry commenced, and in the twilight period following the announcement of the plant closure, the new car's quality status hints at little if any morale deficit in the workplace.

"I think that just shows the dedication and strong desire of our people here to make this the best [Camry to be built locally]."

While Toyota doesn't run a league ladder of output quality from its plants around the world, they are all understood to be within the 90 per cent range, Altona included.

Toyota is an interesting case in the Australian automotive landscape. Camry will continue to sell in Australia after the end of local production. In fact, much like the N14 Nissan Pulsar, it may prove to be difficult telling the imported model from the Aussie-built car.

Contrast that with Ford, which presumably hopes it can build up the image of its Mondeo mid-size car to achieve sales at least commensurate with Falcon. Holden's situation looks just as dire, from the outside looking in. The GM brand is keeping its cards clutched very tightly to the chest, but appears to trust buyers can be convinced to buy a front-wheel drive Commodore built by Opel.

It has probably been easier for Toyota Australia (TMCA) to reach acceptance of its situation; there's the continuity of selling a global model with the same name after local manufacturing ends. Brand legacy helps rather than hinders Toyota beyond 2017.

But the company is still facing some massive changes in its local footprint. TMCA's executive director sales and marketing Tony Cramb told motoring.com.au this morning that not only is the company staring down the barrel of a plant closure that will see 3000 staff lose their jobs, but there's another 300 jobs hanging in the balance as TMCA makes the transition from manufacturing to national sales and distribution. Those jobs are jeopardised by the impending closure of the Sydney office and relocation to Toyota's head office in Port Melbourne.

"We expect to lose half," Cramb told motoring.com.au. By that he refers to those staff based in Sydney who may chose to resign rather than relocate.

Asked whether convincing Sydney staff to move south was actually harder than looking after the production line staff at Altona as they cast around for work elsewhere, Cramb thought for a moment and said: "It's different."

Cramb admits that the production line staff were initially dismayed by the news their jobs were finite, but with time the hostility and despair have given way in many cases to a more positive outlook, helped by assistance offered by the company. Certainly the production staff actively participating in the line-off ceremony this morning were pleased to be involved – and there was no shortage of interest in the new car from the other staff.

TMCA already has processes in place to help the manufacturing staff make the jump from building Toyotas to working elsewhere – and possibly in a different field altogether.

But while it's all well and good to consider the needs of the workers, Toyota remains a business, and it has to observe the needs of its customers too – if it wishes to remain in business.

According to David Buttner, the company has not neglected its customers – and especially the fleets that have been so supportive in the past.

"We're very keen to maintain the Camry nameplate, the reason being whether you're a [private] buyer or a fleet buyer – in your whole-of-life cost of the vehicle the biggest asset you have is the residual value at the end. So there's no continuity for a brand that doesn't instil confidence in you as either a private buyer or as a fleet customer, or even as a government buyer.

"Our commitment to continuing the brand name, albeit in imported capacity, means hopefully we've given confidence to those fleets. We went out in February last year, on the back of the announcement of closure... we went the next day to all our fleet customers around Australia; we spoke to each and every one about our intention to continue the brand name, to hopefully give them that confidence they can still buy Camry – and know that the brand will be here for the long run."

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Written byKen Gratton
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