Toyota to slice production at Altona plant as demand dives

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http://www.news.com.au/heraldsun/sto...4-2862,00.html



AUSTRALIA's biggest car exporter Toyota will slice production at its Altona plant because of flagging demand for Camrys in key Middle Eastern markets.

Staff at the Altona plant were told yesterday that output would be reduced in the first half of this year because export sales were not likely to meet initial targets.

Sources said no jobs were likely to be cut, but any further reduction would threaten jobs.

The Toyota cuts follow a decision by Ford's consumer finance arm to stop lending money for retail car sales in Australia.

Ford Credit's decision will cost 160 jobs.

Export sales are critical for the future of Toyota's Altona plant. More than half of the 150,000 cars produced at the factory last year were exported to countries such as Saudi Arabia, Kuwait and Bahrain. The export business raked in $1.7 billion.

Toyota spokeswoman Heather Box refused to comment on the imminent production changes.

"In these circumstances we are reviewing our production volumes, as we always do, but there is nothing we can confirm today," she said.

Almost 10,000 full-time jobs were lost in Victoria last month as national unemployment broke through the half a million mark.

The official unemployment rate rose from 4.4 to 4.5 per cent amid warnings of much worse to come. Victoria's unemployment rate jumped from 4.4 to 4.6 per cent.

Nationally, 43,900 full-time jobs were lost in December, but part-time employment increased by 42,800, Australian Bureau of Statistics figures released yesterday showed.

The Australian National Retailers Association said 45,000 jobs had been shed from the sector last year and another 50,000 were at risk.

Despite only a slight increase in the national jobless rate, the Government and economists agreed the figures confirmed the effects of the global economic downturn.

"Australia is not immune from the impact of the global financial crisis," Acting Prime Minister Julia Gillard said.

The unemployment rate was likely to climb to 5 per cent by the middle of the year, Ms Gillard said.

While experts had predicted the economy would lose 20,000 jobs, an increase in part-time employment of 42,800 for the month indicated businesses were seeking to ride out the gloom by -- for now - avoiding wholesale job slashing.