Denso to Close Australian Unit

Denso Corp. is shutting down its 25-year-old automotive systems unit in Australia because its customers there are abandoning local production.

Denso says it will determine exactly when to cease operations based on customer schedules. The unit, which has 400 employees, makes radiators, climate control units and other components. The company will continue aftermarket sales in Australia.

General Motors announced last year it will stop making cars in Australia in 2016. Ford and Toyota plan to do the same in 2017, thus ending the country's domestic auto industry. Locally produced vehicles accounted for only 10% of new-car sales in Australia last year.

Carmakers say high labor costs, a strong Australian dollar and competition from lower-cost imports have been eroding sales of domestic models for decades.