Toyota Australia in Peril Case Study - Engineering Assignment Help

Assignment Task

Immediately after the exit announcement by Holden, Toyota expressed its fear that it was in peril:

This will place unprecedented pressure on the local supplier network and our ability to build cars in Australia. We will now work with our suppliers, key stakeholders and the government to determine our next steps and whether we can continue operating as the sole vehicle manufacturer in Australia. We will continue with our transformation journey as planned.

Other stakeholders in the automotive industry also expressed similar fears. Apprehensive of Toyota’s ability to continue manufacturing, the Australian Manufacturing Workers Union (AMWU) national vehicles division secretary, Dave Smith, said, “It’s now highly likely that Toyota will leave Australia. In fact it’s almost certain.”

Why did Toyota fear that Holden’s exit would put unprecedented pressure on the local suppliers? How was Holden’s exit related to Toyota’s ability to build cars? Why were observers contemplating an exit by Toyota, the best-selling and most trusted brand in Australia, especially when it had been planning to continue its transformation journey? What had gone wrong with the company that had such a glorious long history of production? Should Toyota stop manufacturing in Australi

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