TRD dead Down Under

Toyota has killed off its TRD operation. The decision announced this afternoon sees the production of the TRD Aurion and HiLux models terminated effective March 31, 2009.

The cessation of production operation affects around 30 people across Toyota Australia and its production partner, Prodrive. While Toyota will redeploy its 17-strong TRD team, the future is less certain for Prodrive staff. Indeed, Prodrive boss Down Under, Bryan Mears, told the Carsales Network he was "not confident" that the organization would be able to place its affected workers.

In a press statement headed "TRD - OPERATIONAL CHANGE" issued this afternoon, Toyota Australia said the decision to kill off the local satellite production facility and the models had been made to protect its core business activities. It said the decision was made after a business-wide review.

"Toyota has a responsibility to ensure its core business activities, and the people who rely on them, are protected for the long term," said David Buttner, senior executive director Toyota Australia.

"Toyota made a significant financial commitment to TRD vehicle conversion and clearly understood short-term profitability was unlikely. However, the perspective has changed for business globally and those new rules require tough decisions for the greater good. This is one of those decisions," he opined.

According to Toyota's Mike Breen, the Toyota Australia board made the decision last Monday. It advised Prodrive Monday afternoon.

Mears said Prodrive was "still absorbing the decision".

"We will be trying to place our affected staff within the organization, but I'm not confident. It's very late in the year to be contemplating something like this. We're working our way through it," Mears told the Carsales Network.

Mears said he was aware the TRD initiative was "having its trials" but that he was "surprised" by Toyota Australia's decision.

Toyota says it has sold close to 900 TRD vehicles (to November 30, 2008). This number comprises 537 TRD Aurion and 351 TRD HiLux.

The Carsales Network understands that while the HiLux model was meeting its sales targets of around 45 units per month, the supercharged Aurion was selling at barely a third of its projected volume.

The decision flies in the face of Toyota's generally upbeat and 'slow burn' viewpoint of the development of TRD brand Down Under. As recently as October's Australian International Motor Show, Toyota chief Buttner was still talking up the likelihood of a third TRD model.

Head of the TRD enterprise at Toyota Australia, Peter Macgregor, told the Carsales Network that "fundamental changes" and the impact of the current financial climate made it clear the local production operation could not continue.

He said, however, that no firm decision had been made on the future of the brand.

"We have invested significantly [in the brand and via engineering resources] for a while. It became clear [however] that that level of investment would have to continue for a period of time," Macgregor opined.

"At this point in time there are no more local conversion projects in plan. I wouldn't rule out that TMCA [Toyota Motor Corporation Australia] would reevaluate the situation [in the longer term], but I wouldn't rule it in either," he said.

After a false start and production suspensions after a high-profile engine failure, Toyota Australia initially launched its TRD Aurion via a limited number of specialised TRD dealers. Earlier this year the company rolled TRD out into all Toyota showrooms.

At the time, boss Buttner denied the move was a reaction to poor sales. He said sales were on plan. Indeed he claimed other countries were considering integrating the TRD performance brand into their wider Toyota ranges.

Toyota says it will continue to build both the HiLux and Aurion models through to the March 31 deadline. Toyota has confirmed TRD owners would be covered by Toyota's new-vehicle warranty and the company would guarantee the continuing supply of parts to meet its legal obligations.