The former boss of the manufacturing workers union says the Government could be buying “a pig in a poke” with the Camry deal. In other words, Kevin Rudd has signed the deal in a hurry without really understanding what he’s getting.

“What disturbs me about it is that it seems to me we’re buying old technology,” he has told the The Sydney Morning Herald.

He has a point. The Camry hybrid we’ll get is based on the same technology as the current Prius, which is essentially almost a decade old. By 2010, both General Motors and Toyota are aiming to have much more efficient plug-in hybrids based on the latest battery technology.

So why has the Government been so keen to secure the deal? And why is it giving the world’s most profitable car company a $35 million hand-out when the company itself says it was going to bring the hybrid Camry to Australia anyway?

Add to that the fact that all the components for the hybrid drivetrain in the Camry will be imported from Japan, and the net worth to Australia of the deal begins to become a little dubious.

Senator Campbell suggests the generosity may be tied in with local manufacturing jobs more than genuine environmental concerns.

Toyota has been very vocal about the fact that its Australian manufacturing operation, including its export business, is looking less attractive to head office because of the high labour costs and the strength of the Australian dollar.

Senior management says the local operation’s biggest threat isn’t Holden and Ford, but other Toyota plants around the world. The company now has Camry plants in seven countries around the globe, including China, Russia and Thailand.

Was Mr Rudd’s decision more about keeping Camry production in Australia and less about delivering a greener future for Australian motorists?

After all, 10,000 hybrid Camrys, some of which are likely to substitute for Priuses, are hardly going to put much of a dent in our automotive industry’s global footprint, given that Australians buy one million new cars every year.

So do you think Senator Campbell’s on the money or is the Camry deal an important step towards a greener future for the Australian car industry?

Richard Blackburn

Posted on June 23, 2008 4:24 PM