The Federal Industry Minister Ian Macfarlane says there is a high chance Toyota will stop making cars in Australia, unless changes are made to workers’ awards.

The Federal and Victorian Governments held talks this week to discuss reforms needed to save the carmaker and the components sector.

Mr Macfarlane says no specific plan has been agreed on by both parties, but reforms are needed to the sectors uncompetitive employment agreements.

“The reality is that unless we can reduce the cost of producing cars in Australia, then the Toyota workers will not have a job in the long term,” he said.

Toyota is appealing against a Federal Court decision that stopped it from varying its workplace agreement.

Mr McFarlane says Toyota will have trouble competing with international exporters unless changes are made.

“So what I’m saying to the workers of Toyota is think very carefully about the current situation, with the current reforms that Toyota is trying to put in place,” he said.

“If those reforms don’t take place then there’s a very hight chance that Toyota will not be able to compete and, therefore, the last car manufacturer in Australia will close.”