Australia facing loss of Toyota operations

SYDNEY, Oct. 27 (UPI) -- Toyota may soon pull its automobile operations out of Australia as rising interest rates have pushed the Aussie dollar to record highs, a report says.

Facing such a financial crisis and a possible withdrawal from Australia, the Asian manufacturer called on the Australian government to take action to repair the struggling automobile industry, The Australian said Saturday.

While Toyota has warned that its departure could result in the loss of thousands of jobs, Australian Federal Industry Minister Ian Macfarlane remained steadfast against government intervention.

"Changes in the strength of the Australian dollar affect all manufacturers, and businesses have to manage that risk," Macfarlane said Friday. "Some of the car manufacturers that sell both imported and locally made cars in Australia have a natural hedge -- a strong dollar may reduce profitability of exports, but the cars imported in U.S.-denominated contracts will be relatively cheaper."

The Australian said that the federal support package in place for the automobile industry in Australia is not due to expire until 2015.