Toyota Secures Largest Export Contract for Australian Car Industry

Strategic Insights -

Australian car manufacturers are set to reap a significant reward from a massive export contract signed by Toyota with Saudi Arabia and other Gulf states. The contract, worth $500 million, will see tens of thousands of Australian-built Toyotas shipped to Saudi Arabia and the Gulf states starting early 1996. This move will more than double Australia's automotive exports, with the industry's total earnings expected to reach $1.965 billion.

Key Takeaways:

  • The export contract is the largest secured by the Australian car industry, with Toyota shipping $500 million worth of Camrys from its new factory at Altona to Saudi Arabia and the Gulf states.
  • The contract will increase Australia's automotive exports by one-third, from $1465 million in 1993 to $1.965 billion.
  • The Altona factory, which will employ 2500 people when fully operational, is expected to create job gains but the exact number is difficult to quantify due to the high-tech and automated nature of the plant.
  • The Middle East supply contract makes the Altona factory a key player in Toyota's global production network, joining factories in Britain, the United States, and Canada.
  • A Holden export program, involving shipments of Commodore-based cars and assembly packs to the US, is also underway and will add nearly a billion dollars to Australian automotive export earnings.
  • The fast-tracking of the export plans is a result of Toyota's Australian operation producing higher quality and lower-cost vehicles.
  • Toyota's original export plans called for major exports in 1998 and beyond, but the significant progress made in the Australian operation has accelerated the timeline.

Statistics:

  • $500 million: The value of the export contract signed by Toyota with Saudi Arabia and the Gulf states.
  • $1.965 billion: The total earnings expected for the Australian automotive industry from the increased exports.
  • 20%: The increase in export earnings compared to 1993 levels.
  • 2500: The number of people employed at the Altona factory when fully operational.
  • $1465 million: The total automotive exports for Australia in 1993.
  • 20,000-30,000: The number of additional Camry parts being tendered by local component suppliers for export.

Sources:

  • Toyota Australia
  • Japanese sources
  • "Australian Industry Analysis" article
  • "Toyota to Export from Australian Plant" article