Toyota tips $123m into securing Altona’s future

TOYOTA will pump $123 million into its local car-making operation to help fund the production of a facelifted Camry and Aurion from 2015.

Today’s funding announcement, which includes a $23.6 million federal government grant and an undisclosed sum from the Victorian government, should shore up production at the company’s Altona production line through to the end of the decade.

News of the funding boost comes just hours after the federal government pledged an additional $200 million to the Australian car-making industry should it win re-election on September 7.

However, this $23.6 million package has not been sourced from this pool, and it remains unclear what, if any, additional funding would go to Toyota from the $200 million tabled today.

Toyota Australia media and external affairs manager Beck Angel said today’s announcement was not tied in with the car-maker’s work towards adding a third model to the Camry mid-size and Aurion large sedan range built on the Altona production line.

The car-maker is believed to be assessing the viability of adding a high-volume, high-yield model, such as the Camry and Aurion-based RAV4 compact soft-roader, to its Australian operations.

“We’re always looking at the potential to add a third model, and we’ve said that decision is likely to be made in 2014,” she said.

“Today’s announcement is unrelated to that,” Ms Angel said.

Toyota has also received an extra $5 million in federal grants towards its five-year, $15 million supplier development program. The $123 million figure mentioned is inclusive of this $15 million supplier scheme.

The 25 per cent funding boost will, according to the company, “allow the program to be accelerated and intensified to assist companies that supply components to Toyota”.

Concern over the security of key suppliers to Toyota and fellow local brand Holden have intensified since Ford announced its intention to quit local manufacturing by 2016, diminishing supply scale.

“It is vital that we continue to have an ongoing partnership with governments to ensure the long-term viability of local manufacturing,” said Toyota president and chief executive Max Yasuda.

“Today's announcement is a positive step forward. This investment was secured due to the enormous effort undertaken by many people at Toyota Australia during the past 18 months and the critical support of the Victorian and federal governments.” Toyota Australia exports about 70,000 Camry and Aurion vehicles per year predominantly to the Middle East, with some exports to New Zealand and the South Pacific Islands.

It has been building cars in Australia for 50 years. This year, the company said it expected to build more than 100,000 Camry, Camry Hybrid and Aurion vehicles at Altona, along with about 108,000 four-cylinder engines at its recently opened $331 million engine plant.

Speaking on the announcement, recently re-appointed industry and innovation minister Kim Carr – who took up the post as part the cabinet reshuffle upon Kevin Rudd’s return to the leadership in June – said the extra money was a sign of Labor’s desire to retain a healthy automotive sector in Australia.

“Toyota Australia’s current success, combined with a long-term strategic focus, sends a strong positive signal for Australian manufacturing generally and the Australian automotive industry in particular. Government co-investment is fundamental to that future,” Mr Carr said.

“At a time when automotive manufacturing has been under considerable pressure, this is an investment in securing thousands of manufacturing jobs and supporting the prospects of employees and their families.” Mr Carr said Australia was one of only 13 countries that could make a motor car from start to finish.

“The Labor government wants to retain the expertise, the investment, the cutting-edge technology and the high-skill jobs this industry attracts for generations to come”.

Victorian minister for manufacturing David Hodgett, whose coalition government will kick in an undisclosed sum, said Toyota would be “investing in capital, vehicle pre-production, design and engineering to ensure that its major facelift vehicle is an attractive and popular choice for Australian and international buyers.

“Toyota is an important part of the Victorian economy, with the Camry produced here for the local and international markets. Toyota employs many people in our state, and the Victorian coalition government is pleased to continue supporting this major local manufacturer.”