The move means Australia will no longer produce any cars locally, with Toyota to stop production of its Camry, Camry hybrid and Aurion models, as well as its Australian-made four-cylinder engines.
Toyota will become an import-only business.
Approximately 2500 employees will be directly influenced by the decision, according to Toyota, with tens of thousands more to be affected in the broader automotive industry.
Staff were assembled at Toyota’s Port Melbourne plant this afternoon and informed of the decision.
Unfeasible economic conditions, including a higher Australian dollar, high manufacturing costs and low economies of scale were blamed for the decision.
"This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years," said Toyota Australia President and CEO, Max Yasuda. “We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia.
"Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts.”
More to follow.