Toyota says it will stop making cars in Australia in 2017, bringing an end to the nation's car manufacturing sector. About 2500 workers at the Altona factory in the state of Victoria will lose their jobs.
Toyota Australia president Max Yasuda on Monday blamed the "unfavourable Australian dollar", high costs of manufacturing and low economies of scale.
The Altona factory will close in 2017. Photo: AAP
In less than 12 months, all three of Australia's car manufacturers - Ford, Holden and now Toyota - have pulled the pin on the local industry, the ABC reports.
The Australian Manufacturing Workers Union says the decision is devastating and could cause an economic recession all along the south-eastern seaboard.
It says thousands of jobs exit Australia - not only at Toyota directly, but all the way down the supply chain.
The Australian Council of Trade Unions warned the decision could cost as many as 50,000 jobs, and wipe $A21 billion from the economy.
However, Prime Minister Tony Abbott says "better days will come".