Toyota to build hybrid in Australia

June 10, 2008 -Toyota is set to reveal plans this morning to make Australia's first hybrid car when it makes a simultaneous announcement in Japan and at its Altona plant.The company plans to start making the petrol/electric Camry model in 2010, a year or so after it also goes into production at Toyota's Thailand plant.

The car is expected to represent a small but growing segment of the Altona plant's output, currently 145,000 cars a year. Output is expected to rise to 10,000 cars a year in three or four years, although the rate of take-up will depend on what sort of inducements the Federal Government can provide for buyers.

Toyota's decision is expected to create a ''handful'' of new jobs at the Altona plant, Toyota Australia public relations manager Mike Breen said.

The plant employs 3500 workers and builds 149,000 4 cylinder Camry and V6 Aurion cars a year.

Hybrids tend to cost more than regular cars and buyers have been reluctant to pay the extra cash. However, the soaring price of petrol has made the extra cost of a hybrid seem less of a hurdle.

In the US, the hybrid Camry costs about 14% more than the 2.4-litre petrol-engined model and if a similar increment was applied in Australia, that would put the cost of a Camry hybrid at about $32,500.

Buyers would achieve fuel economy of about 5.7 litres per 100 kilometres, compared with 9.9l/100kms for the petrol-engined model.

With petrol at $1.60 a litre, a Camry hybrid buyer would have to drive 59,500 kilometres to save the extra $4000 paid for the car.

This has also been an issue with diesel-engined cars, but buyers are increasingly willing to pay the extra cost for a diesel engine so they can achieve the fuel consumption savings.

The introduction of the Camry hybrid will give the Australian parts industry a chance to develop the technology and skills that will be required as the motor industry moves away from petrol and towards vehicles that consume less hydrocarbons and emit fewer pollutants.

On Friday, General Motors-owned Holden announced it would end production of its Family II 4 cylinder engine at the Fishermans Bend plant in Melbourne, cutting 531 jobs.

With Chris Zappone, BusinessDay

Original Source: The Age Melboune