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The Closure of Toyota's Manufacturing in Australia

In: Business and Management

Submitted By bendanjan
Words 2680
Pages 11
Introduction
With the high manufacturing costs and unfavorable Australian dollar that caused a difficulty for Toyota to export its cars overseas, Toyota has made an announcement that it will stop manufacturing cars in Australia in 2017 following Ford and Holden’s move (Wallace & Ferguson, 2014). The closure of Toyota’s car manufacturers in Australia will affect numerous people including the shareholders and stakeholders of the company. Also, this decision will affect the car making industry as well as the country’s economy.
The purpose of this essay is to identify both the negative and positive consequences that will appear when Toyota stops manufacturing cars in Australia. The essay will also point out the responsibility bear by Toyota and the Australian government for these consequences. In this essay, the shareholder and stakeholder theories of corporate social responsibility are used to analyse and evaluate the decision made by Toyota.
Background of Toyota Toyota Motor Corporation was first established in Japan in 1937. It is one of the largest car makers in the world, with numbers of factories which manufacture or assembly motor vehicles worldwide. It can be said as a most successful and most profitable car manufacturer in the world. Vehicles produced by Toyota Motor Corporation are divided into five brands which are Toyota, Lexus, Hino, Ranz, and Scion. The vehicles produced under these brands are sold in more than 170 countries (Toyota, n.d.).
Toyota Australia is a wholly-owned subsidiary of Toyota Motor Corporation. In 1963, Toyota started to assemble cars in Australia. Although the car making industry in Australia is not as large as other countries such as Japan or Germany, Toyota Australia has grown well in Australia. Over the 50 years, Toyota Australia has great achievement such as the first successful exporter of the Land Cruiser, first…...

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