Rudd confirms $35m Toyota hybrid deal
10 Jun, 2008
42 Comments 
Prime Minister Kevin Rudd has confirmed that Japanese car-maker Toyota will start building four-cylinder hybrid versions of its Camry model at its factory outside Melbourne.
Mr Rudd made the announcement at Toyota’s global headquarters in Nagoya, Japan, alongside the company’s president, Katsuaki Watanabe.
The Federal Government will allocate $35 million from its Green Car Innovation Fund to support the move, which will produce up to 10,000 of the petrol-electric cars each year from 2010.
The Victorian Government will also make a financial contribution to the project.
Mr Rudd says the Government is talking to all Australian car-makers about building more environmentally-friendly cars.
“What we have here is an important underpinning technology which we will now have manufactured in Australia,” he said.
Mr Watanabe says it is too early to know how many jobs will be created.
Victorian Premier John Brumby says it is great news for the industry, motorists and the environment.
“It gives Australian families the option, in the face of rising petrol prices, to buy a locally-made hybrid,” he said.
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June 10th, 2008 at 1:53 pm
I think all of today’s developments highlighted in this story and the related ones below are a very positive move.
Vote:June 10th, 2008 at 2:21 pm
I agree, anytime a manufacturer agrees to commit to future nvestment and manufacturing here is a good thing. Especially when a new technology is involved.
Vote:June 10th, 2008 at 2:25 pm
Will we see also see localy built diesel hybrid Focus and maybe even a smallish Torana? They have to do something surely.
Vote:June 10th, 2008 at 2:36 pm
To bad the goverment dont want to save Ford and Holden jobs and promote work here instead help a Japanese manufactures. I can see the future bye bye to ford and Holden due to goveremnt not suporting Ausie workers here promoting there own car brands that are built here instead of theses import breads! we will se another Mitsubushi dispaeer!
Vote:June 10th, 2008 at 2:36 pm
I agree Golfie – What’s more with all the positive comments about Toyota and what they are planning to do etc on this blog and the others relating to the Hybrid Camry.
Hopefully Dingo will finally realise that we DON’T have a problem with Toyota or their products [perse]… but that the real problem lies a little closer to home
However; its obvious after reading “The Milky Bar Kids” speech that he is unaware of Holdens plans to release not only a Hybrid Commodore but also a Diesel Commodore within the next 2 years. As well as a new Compact car and possibly a hatchback. Ford also have similar plans but He was SOLELY focussed on Toyota.
Oh no!…. are you thinking what I’m thinking…?
Vote:June 10th, 2008 at 2:41 pm
Stav get a clue, read the article. Maybe both?
You said: ” can see the future bye bye to ford and Holden due to goveremnt not suporting Ausie workers here promoting there own car brands that are built here instead of theses import breads! ”
The whole point of the article and all the news is that the hybrid camry’s will be built here. Toyota is just as Australian as Ford and Holden are.
This is a good move for everyone, at least now that someone has committed, the other manufacturers will want to follow suit quickly, or be left behind.
Vote:June 10th, 2008 at 2:48 pm
Great news, and for those of oyu who keep whinging that there isn’t the same contribution from the Fed Gov for Ford and Holden, think again. There is 5/600 million aside with the gov for greener technology in the Australian car instustry, and Toyota is only getting 35 mill of that. This is the start of a new era for the Australian car industry. Next will be the hybrid Commodore, clean Falcon Diesel, and 4 cylinder Focus.
Vote:June 10th, 2008 at 2:51 pm
Why do the taxpayers of Australia have to give Toyota $35mil? That’s this week. Toyota aren’t silly – they will do a Mitsubishi here, and next week they will need $100mil, and after a few months, due to unforseen circumstances, they’ll need another $300-400mil.
Why do all governments get sucked in this way?
Just put a 35% GST on every manufactured import, and you’ll have Toyota falling over their feet to build here without asking for handouts. Other countries do it, eg China, and they seem to have a VERY healthy manufacturing industry. Yes, their labour is cheaper, and they make a lot of crap, but they have an industry.
Vote:June 10th, 2008 at 2:52 pm
huh, correct me if i’m wrong but I would have thought that $35 million is quite a small amount for this type of initiative. I’m sure I read something recently about $500 million being involved. Will they get more funding from the Victorian Government?
Vote:June 10th, 2008 at 3:13 pm
well considering Toyota all ready have engines in the pipeline it likely that more funding will go to ford and holden because there a small operation and not as big as Toyota and it not like Toyota spends hundreds of millions to developing cars from scratch like holden and for they bring them here and assemble there here(not that there is anything wrong with that ford will be doing it with the focus.
Vote:June 10th, 2008 at 3:32 pm
Great to see something positive in terms of car industry’s future commitment in Australia.
I have been hearing this talk of getting Holden diesel and hybrids and v8 cylinders displacement on demand, but how come I have not yet seen a lot of progress? In terms of developments etc – 2 yrs is a short time when you think about it and honestly 6 months from this yr have already passed on.
If they plan to bring the “mild” hybrids to Australia, like GM does in US, thats going to be a major disaster, considering that all 9000 vehicles from GM were recently recalled due to battery leaks…
Even Hyundai is planning to introduce hybrids, and there was some talk of a LPG based hybrid!
Not sure what Nissan is planning – apart from the GTR.
Mitsubishi plans to release a diesel soft roader – but no such news of a hybrid or electris vehicle.
Honda has plans for a smaller hybrid alongside the civic.
Ford plans to build the focus…
Why cant holden build the Barina or Viva replacements in Australia? Whatever it maybe it has to be better than a rebadged daewoo…
Vote:June 10th, 2008 at 4:33 pm
Stav, last time i checked Holden was still a division of GM, and Ford Australia was still owned by Ford USA! All the volume auto makers in this country have always been foreign owned!
and Reckless1… protectionism doesn’t work… it just makes the local producers deliver lesser products for prices just below the imports. Notice how its only recently that people have been describing the local products as world class? Because for too long they were sub par offerings who’s only claim to fame was the amount of metal you got for the money!
Vote:June 10th, 2008 at 4:50 pm
I’m not really getting why toyota need $35 million to do this. A toyota camry hybrid alreay exists, its just a matter of toyota been bothered to build it hear. Why should the government have to give them money. The very least toyota could have been doing is importing the hybrid version. Its not as if toyota aren’t set up to build camry’s here.
Vote:June 10th, 2008 at 5:31 pm
Maybe the government sees the light in Toyota and will not only create more jobs, but maintain them as well. Holden and Ford are still crumbling, and they don’t have advanced hybrid technology.
Vote:June 10th, 2008 at 5:55 pm
Memo to Ford- Do something magic with LPG to get part of the fund.
Vote:June 10th, 2008 at 6:18 pm
Reckless – I sorta agree with you but think of it as tax rebate to keep Australians in job opening up a new era of ever-so-slightly greener motoring. If all goes well Australia could show the rest of the world how its done. Currently I know of no UK manufacturer who is yet able to produce a hybrid in the near future. GM have a hybrid Saturn Aura in the states but do not have the sense to produce it in Europe where we have the highest fuel pricess in the planet.
Vote:Good on yah Toyota for doing something that people want.
June 10th, 2008 at 7:35 pm
Great,now aussie tax payers are footing the bill for toyotas green car fraud.Would toyota do this if they didn’t get the money.Thanks aussie tax payers for doing something the people want,but dont reaily want or need.N Name is right,Europe should have these cars before we do,and TW I hear you mate. So thanks for nothing toyota,there only stepping in to make more money,yet they will be seen as automotive saviours by doing us a favour.At least it will look better that a prius.
Vote:June 10th, 2008 at 7:58 pm
Phil – there is an article on ‘The Motor Report’ that states Toyota HQ has confirmed no new jobs will come of this but it will create greater stability for it’s exsisting 3500 strong Altona workforce.
Considering Toyota is the only local manufactuer to have yet retrenched any workers unlike Holden, Ford and the complete demise of Mitsubishi … it’s a damn good effort on thier behalf.
Vote:June 10th, 2008 at 8:28 pm
This is a stupid idea in my opinion, those toyotas… still use petrol! And in 5 years they will need a new battery. As of yet there is no method to dispose those batteries. They are not fuel efficient on open roads and as Petrol goes past $2 a litre the Priarse will cost more per kilometer than a E-Gas falcon or a LPG commodore. Stupid dumb idea that is purely a PR exercise. I thought the government should be promoting alternative fuels, not trying to keep japan happy by buying their crap.
Vote:June 10th, 2008 at 8:30 pm
^^^ also refering to Rudd planning to change all government vehicles to hybrids
Vote:June 10th, 2008 at 8:52 pm
hope you all look forward to EVERY government fleet vehicle being on of these plannet saverhope you all look forward to EVERY government fleet vehicle being on of these plannet savers.s.
Vote:June 10th, 2008 at 9:47 pm
TW
Camry Hybrid has existed for about a year now or more, its sold here in the states.
One major issue why the Government must assists local manufacturers, particularly Toyota. is due to the strong AUD.
Toyota has broken records in terms of sales, but actually lost millions because of the strong AUD.
Future of manufacturing in Australia is really highly dependent on the plans the Government NEEDS to make now.. and establish now. Australia is very expensive to produce cars in…
With the government taxes and the way the Oz economy is going, it would be disastrous for ALL manufacturers to make cars in Oz…. China is booming and has a quarter the salary that of the standard Oz worker…. without Government help, China will be stealing ALL manufacturing (major, automotive etc) from Oz…
and thats not good at all…
Vote:June 10th, 2008 at 10:45 pm
Can I just point out that battery disposal should be given the bare minimum weight in this whole hybrid debate. Put it in context, the average Australian generates 1.5 tonnes of garbage a year. So an average family of 4 generates 6 tonnes a year. 30 tonnes in 5 years. That 1 hybrid battery that needs to be replaced every 5 years doesn’t seem so horrific anymore does it?
As for whinging about the 35 million dollars that Toyota will be getting for this, its a VERY small price to pay for the benefits that it will bring. Not only the extra job stability that has already been mentioned, but access to cheaper hybrid vehicles for all of us. At the moment all we have a choice of is imported hybrids which cost more because of the transport costs to our shores.
In fact 35 million dollars isn’t even that much. About 2 dollars to every taxpayer. Have we already forgot about the 30 billion dollar tax cuts that the Rudd government has pledged?
Vote:June 10th, 2008 at 11:01 pm
man some of the readers here seem to be so ignorant!
out of the 500M AUD only 35M aud has been distributed so far …. so that leaves 465M AUD. Now thats to be split between 2 more companies… u do the fregging maths!
Toyota, similar to Holden and Ford, is here to make money, and it just so happens that they are smart and know how to make cars and money… Thats not to say that Holden and Ford dont know how to make cars – they are as good if not better … but they dont seem to be realising the urgent need to invest in fuel efficient cars.
There is nothing smart in putting a huge engine and increasing the size yr after yr to get “better” performance …
To be honest, Ford seems to be a little more ahead in the game than Holden…
Vote:June 11th, 2008 at 7:27 am
I’ll be happy if Krudds $35million is spent by toyota on giving the car a bubble,bubble george jetson engine noise.
Two very important questions though.
How much fuel will it use? How much will it cost.
Vote:June 11th, 2008 at 7:46 am
Found it.
Hybrid Camry returns american epa of 33/34 mpg.
Not exactly flash is it? thats about 7.5litres per hundred. as an example a petrol Focus (not much smaller than a camry) will do 7.1 litres,
A 4×4 Suzuki Vitara Diesel will do 7.6 & a big fat BMW X5d will return 8.6.
Game changing?
Vote:June 11th, 2008 at 8:08 am
So what are the real world uses for these cars. Are they good for towing anything ? I mean what are they rated for towing a load and what is the fuel economy if I do tow anything ? I currently have a Ford Territory and I need the power/torque to tow. Can i have similar in a Prius ?
To me it seems they are targeted purely at a niche market for people who simply drive around in the cities. Strange to get a large bonus payment like this for such a small percentage of the market type of car.
Vote:June 11th, 2008 at 9:33 am
To all those people who think $35,000,000 is small pennies, think about it this way.
Toyoya will build 10,000 cars and they will therefore get $3,500 PER CAR and in their hands it will be TAX FREE, and they get it in advance.
Yes that’s only year one, but as I said their snout will be in the trough pretty quickly for the Year 2 instalment – after all, there’s $500 mil up for grabs, and the first $35 doesn’t even dent the pile.
The hybrid thing doesn’t even have good economy.
I would support this IF Toyota got the cash for building a GAS/electric hybrid that uses our own LPG or LNG or CSG
Vote:June 11th, 2008 at 10:27 am
I would have thought the majority of cars used in Australia are used almost entirely in cities Westy :S
Reckless1, I think the cost of investment in the capital required to be able to produce hybrid cars here would actually far exceed the $35 mill bonus that Toyota will receive.
It will only go far as to subsidise the cost for Toyota; surely if they were making money for nothing why aren’t Ford and Holden jumping on the wagon to get their handouts too?
I read on ninemsn that the expected injection and economic benefits of this single decision alone is expected to be in excess of 150mil.
Vote:June 11th, 2008 at 10:30 am
I am surprised by the amount of negative opinion on this forum – seems toyota is everyones favorite company to bash – sounds like tall poppy syndrome to me … i think this is great news for the automotive industry in australia.
yes i know the car already exists, and yes it isn’t exactly new technology, but manufacturing a new type of power train to a vehicle isnt as easy as most people think!! Either way, producing this vehicle here will require ALOT of engineering!! Just to install the facilities, new processes and new controls… i am guessing capital works at the plant alone will be well over $35 million dollars.
couple in the extra security to toyota workers, toyota’s suppliers and the expertise the industry will gain in general, it is a great footing to modernise and make relavent the australian auto industry…
as for diesel & LPG – sure they are good alternatives – but in my opinion they are dying/old technologies… hybrid powertrains are a step in the right direction of the long term goal of EV/fuel cell vehicles. by supporting hybrids we are effectively reinvesting into technology which will eventually work its way into these vehicles
my last point of frustration – how is toyota any less desserved of assistance or less australian then holden or ford?? ALL 3 companies are foriegn owned – toyota has done nothing but support the industry in australia… they are the LARGEST manufacturer in Australia – producing more vehicles here then Holden and double as many vehicles as Ford… and just like Ford & Holden – Toyota have a large design/engineering centre where they design and develop brand new vehicles…
anyway – back to topic – well done toyota – i hope GM/Ford follow your lead!
Vote:June 11th, 2008 at 12:09 pm
I beleive the “Not much oil left” theroy is a big money making lie.I am not one of those people beleive everything channel 9 reports and some ignorent people should pull there head out of the sand and open your mind. EVERYONE MUST CHECK THIS OUT. http://www.infowars.com/?p=2595 all hybrid cars are a automotive/oil,industrial scam
Vote:June 11th, 2008 at 1:08 pm
Trackdaze isn’t the USA gallon only about .8 of an imperial gallon? If thats the case you are getting about 41 mpg imperial or about 6.8/100, not to bad?
Vote:June 11th, 2008 at 1:26 pm
Silky, Correct on the US/UK gallon.
The Hyundai Elantra LPG/hybrid will be much cheaper to buy, much cheaper to run, better for the environment, and be here by end of 2009 – maybe Hyundai can put their hand out for cash for an “assembly” plant and “build” them here.
Vote:June 11th, 2008 at 2:59 pm
Just read in todays motor mag that Holden may have a hybrid V8 commodore as early as 2010. The technology is already in use combined with V8 engines in the states by GM so it would be relitively easy for holden to adapt into the commodore.
The reason they are looking at using the technology on V8 models first is because they are the most fuel inefficient models and therefore the most in need of hybrid technology. This combined with cylinder deactivation technology (due later this year on V8 models) could see a V8 SS commodore return fuel economy figures that better a V6, whilst at the same time IMPROVING performance!
Obviously if the technology makes its way into V8 commodores, it will be only a matter of time untill it can filter into other drivetrains. Same article in motor also said that holden are already working on turbocharged and direct injected 4 cylinder commodores with power outputs of around 180kw. Holden is also very keen to get direct injection into ALL V6 models, not just the high end SV6 and calais models. Also direct injection is a real possibility for V8 models aswell, improving economy even more. And turbo diesel variants are already well advanced. Basically you will have a choice of turbo 4cyl, V6, V8, hybrid V8 and turbo diesel V6 models, all with direct injection.
Sounds like GM Holden are having a very serious look at how they can maintain commodores popularity in increasingly fuel concious markets, without compromising commodore’s existing performance credentials.
I’m sure the toyota fans however will still see holden as un-technological and crap
Vote:June 11th, 2008 at 6:12 pm
How long has Toyota had hybrid V8’s for now … quite a while although they can only be found in a Lexus.
GM has got nothing on Toyota or Honda were hybrid technology is concerned.
Besides, GM hybrid’s are not exactly reliable are they … battery leaks anybody !!
Vote:June 11th, 2008 at 6:13 pm
Ooops – forget … complete system shut downs aswell associated with the leaks !!
Vote:June 11th, 2008 at 7:13 pm
Toyota are leaders in hybrids, its that simple
Vote:June 11th, 2008 at 11:14 pm
all i was saying is that holden are hardly sitting on their hands and doing nothing are they! Toyota are yet to master making a hybrid that is a realistic proposition for a family car, only luxury models and the prius which even toyota would admit is more of a statement then a car.
Vote:June 12th, 2008 at 6:31 am
silky Says:
June 11th, 2008 at 1:08 pm
“Trackdaze isn’t the USA gallon only about .8 of an imperial gallon? If thats the case you are getting about 41 mpg imperial or about 6.8/100, not to bad?”
Thanks did the calc’s in the head. 6.8/100 still isnt crash hot though is it? & once you get out of the CBD postcodes you’ll be guzzling juice like a y genner with a case of pre krudd alcopops.
Afterall, a Peugot turbo diesel wagon does 5.0/100. A VW Jetta will do 5.5/100. (yes, that more than covers the price differential of diesel and ensures less demand for oil and guarantees supplies will last longer too)
Vote:June 12th, 2008 at 8:42 am
tend to agree with trackdaze, currently hybrids are just not impressive enough when it comes to economy when you have considerably cheaper diesel cars (hyundai i30 anyone?) running around with the same, if not better, fuel economy.
Vote:June 23rd, 2008 at 6:48 pm
Have we bought a hybrid white elephant?
Retiring Labor senator George Campbell has taken a parting shot at the Rudd Government’s decision to provide Toyota with $35 million to build a Camry hybrid in Australia.
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
Vote:August 11th, 2008 at 2:51 pm
me too
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