Toyota’s move to Melbourne may already be unravelling with marketing team obliterated
The countdown is on: Australia’s most-popular car brand will soon move its operations from Sydney to Melbourne. But the move looks set to destroy Toyota’s marketing team. Simon Canning investigates.
Just four months before the end of manufacturing in Australia, and six months before it officially moves its entire marketing operation from Sydney to Melbourne, Toyota appears to be facing major challenges pulling off the move and could lose staff with a combined 4,000 years of experience.
“The Japanese simply could not believe no one would move to Melbourne”
Australia’s highest-selling car brand confirmed at the start of the year it would cease production in Australia in October, but also dropped a second bombshell when it announced it would be relocating its entire administrative arm, including its marketing division, to Melbourne.
The move has resulted in a large number of marketing staff opting to take redundancies and remain in Sydney with just 20% of the 370 strong Sydney office agreeing to the Melbourne move, Mumbrella understands.
I think I know what he/she means by “The Japanese simply could not believe no one would not move to Melbourne”, but the triple negative is still making my head hurt.
Thanks for pointing out the rogue “not”. I’ve corrected and reduced the triple to a double.
Simon – Mumbrella
Toyota moved from its manufacturing base in Melbourne to Sydney years ago, losing talent in the process, I think the move was because key executives wanted to live in Sydney, good reason to separate your marketing from your manufacturing base, I don’t think. Companies move bases all the time, depending on the kickbacks from governments, will it impact on Toyota, I don’t think so.
An optimist might suggest that Toyota could get some fresh blood with new thinking.
The world does not begin and end in Sydney.
A pessimist might suggest that Toyota could get the dregs with failed and sub-par thinking given how many autos are already parked in Melbourne agencies.
Totally wrong. Toyota S&M have always been in Sydney with its roots in the Thiess Toyota commercial vehicle sales & marketing operation. Manufacturing has always been in Melbourne with its origin being AMI which became AMI Toyota. When Thiess and AMI were merged in 1988, S&M was allocated to the Sydney S&M team (under Conomos number one in commercial vehicles for years and a market share in the high 30s – 40% share in May 1986) and Melbourne retained manufacturing of cars (market shares around 11-14%). AMI were good car builders but not a S&M culture. True farmers. The cowboys in Sydney had a great S&M culture but knew nothing about building cars!
If Toyota really wanted new thinking they would have moved somewhere new and started fresh with a hand picked crew of sales and marketing people. They might also have used the opportunity to deal with the old school thinking that was rife in Melbourne. However the manufacturing crew always thought Sydney was out of control. This was despite the fact Toyota marketing managed to dominate sales (largely thanks to the Connomos brigade) Melbourne always knew better. So they decimate sales and marketing with a poorly considered move to Melbourne. The best people left a long time ago. It’ll be a corporate case study.
Jamie, you just made my day. Or didn’t not unmake my day…
Thank goodness they are getting rid of those outdated marketing dinosaurs.
I’m particularly interested in the 4000 years of experience. Seems a very relevant, credible, number to reference.
from Melbourne to Sydney > <
Yeesh.
Toyota is not only dependent on passenger vehicles, it also totally dominates SUVs and pick ups. It sells more than double the number of cars as the second biggest marque.
There is no difference between Melbourne and Sydney – standing in a suburban street and you would have no idea which one you were in – just a bunch of prima donnas in Sydney who mistakenly think they’re the only ones holding the place up.
Another challenge is that a significant proportion of the staff that agreed to move are taking on promotions that they may or may not be ready for. Having worked agency side with them for over 5 years, the loss of corporate knowledge both client and agency side is massive. In the long term they’ll come out better for the injection of new blood but the short term will be mayhem.
Wrong!
We’re not talking about product….. it’s sales and marketing strategy and support to the dealers.
It will take time to build up the relationships and the culture.
Why not split the difference and go for Canberra? Bound to work.
“could lose staff with a combined 4,000 years of experience”. Can we have some real, useful data-led reporting here? Seriously guys.
The key issue is why is Toyota moving their S&M arm from Sydney to Melbourne at the same time as they are withdrawing their manufacturing. Data tells us that whenever a brand withdraws local manufacturing they lose market share. Doesn’t seem prudent to then lose significant years of combined corporate knowledge/relationships at the same time. The decision is likely to punish the brand harshly.
The Victorian mantra is to go in with a “no, not possible”, then be dragged kicking and screaming up from there. The NSW mantra is to jump right in and see how it can be done.
Staff are replaceable, knowledge isn’t and in quitting manufacturing this decision has thrown the baby out with the bath water by upending the entire business.
Shame, of the three brands quiting Aus manufacturing Toyota was the best placed to just keep calm and carry on, but they stuffed it by over complicating the entire process and in turn burning the one good thing they had going for them in the transition – their staff!
Lets not forget that this decision also drags Lexus along for the ride – if ever there was a moment in time for Lexus to truely build its own place and identity in Aus it was now but it will just continue on as a division of Toyota’s Australian opportations.
When a marketing guy is put in charge of manufacturing what do you think will happen?
Then think in reverse, when an engineer is put in charge of sales what do you think will happen?
No one seems to be talking about those on the ground. The office staff who work tirelessly to ensure the job is done. So it is true money talks loyalty sucks. “Oh What a Feeling” NOT!!!!!