In a surprise move, Toyota Motor Corporation Australia has announced that it will wind down Daihatsu vehicle sales in Australia. The decision takes effect from Friday 31st March 2006.

Those who have recently purchased a new Daihatsu won't be happy. It's almost certain that the value of Daihatsu models will fall dramatically.

The TMCA board made the decision following an intensive study of Daihatsu’s current and forecast performance in Australia and the broader competitive environment. The date of that meeting hasn't been announced!

As an example of the competitive nature of the new car market, Suzuki sold more units of its brand new Swift model in February (its launch month) than Daihatsu sold of every model it has in its Australian model range!

TMCA has managed the distribution of Daihatsu in Australia since 2000.

Toyota indicate that during the next 12 months, Daihatsu owners will be supported through the existing service outlets. From 31st March 2006, parts, service and warranties will be supported through a national network of service centres to be established.

Where current details are available, letters will be sent to Daihatsu owners advising them of this announcement. Advertisements will appear in major newspapers this Saturday and owners can obtain information through a Customer Hotline or from the Daihatsu website.

TMCA`s Executive Director of Sales and Marketing, David Buttner cited the competitive sales environment and the future outlook for the brand in the small car segment as reasons for the decision.

“We conducted a thorough review which examined matters including the local sales environment, customer preferences, increased competition, financial outlook and recent volume trends. This review determined that the long term viability of the Daihatsu business was limited in the Australian market."

“Details of national service and parts outlets available to Daihatsu owners from April 2006 will be determined during the coming months.”

“Customers who intend to buy a Daihatsu vehicle during the next 12 months can be confident their new car will be supported.”

There are currently 79 Daihatsu dealers in Australia and many are in multi-franchised arrangements.

“We are working with Australian Daihatsu dealers to ensure that all relevant matters are managed effectively, including the continuation of vehicle supply to the network.”

Daihatsu began marketing vehicles in Australia in 1967 and current models include Sirion, Terios, Copen, Charade and Delta trucks.

Ironically, in 2004 Daihatsu talked up their "ambitious plans for growth". But in 2005 they are talking about their demise. Perhaps Toyota will explain the contradiction in their letter to Daihatsu owners!