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

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)

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 !!

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

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.

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!

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.

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

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.

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?

Two very important questions though.

How much fuel will it use? How much will it cost.

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…

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?