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NEWS
Toyota commits to 'facelift vehicle' in 2015
Mid-life refresh for Camry/Aurion will cost $123 million, federal government to contribute $26 millionToyota is already making plans for a major facelift vehicle to go into production at the company's Altona plant from 2015.
That car is expected to be a mid-life update of the current Camry and Aurion, and the company's spend on local development for the new models will cost Toyota $123 million. The Rudd Government has committed to contributing $23.6 million and the Victorian government is also chipping in an 'undisclosed grant'.
"Local manufacturing is an integral part of our business and is a key focus of our five year company-wide transformation program," said Toyota Australia President and CEO Max Yasuda.
"The investment ensures that Toyota Australia continues to build high quality vehicles for our local and overseas customers."
The news from Toyota comes at a time when Ford has already announced it won't continue building cars in Australia beyond 2016 and Holden is threatening to pull out if government withdraws or reduces support for the local manufacturing industry. Toyota's position in Australia is less precarious than Ford's or Holden's. Its export markets in the Middle East have bounced back since the GFC and it currently ships around 70,000 Camry and Aurion models overseas. With the Australian dollar on the wane now, Toyota Australia's business case to build cars locally has strengthened once more.
But the company is preparing for future economic and financial adversity, by developing its supplier chain for enhanced profitability – for both Toyota and the suppliers. To this end, the company is embarked on a five-year supplier development program, which will cost $15 million. The Rudd government is contributing $5 million to that.
"This program will see a dedicated team of engineers working with local suppliers to assist them to improve productivity, diversify their business operations and improve their global competitiveness," Yasuda-san said.
"This program will help strengthen Australia's supplier base through the application and sharing of Toyota Production System principles and best practice manufacturing techniques."
As for the relationship with government, the Toyota boss was unequivocal.
"It is vital that we continue to have an ongoing partnership with Governments to ensure the long-term viability of local manufacturing. 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."
Senator Kim Carr, Minister for Industry, Innovation, Science and Research, issued a press release yesterday announcing the Rudd Government's support for both the new vehicle development at Altona and the supplier development program. The Senator reiterated his mantra that building cars from scratch makes Australia one of just a few countries in the world with the skills and resources necessary for this sort of undertaking.
"Australia is one of only 13 countries that can make a motor car from start to finish," the Senator observed. "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."
Local manufacturing is a controversial subject in Australia, with many people taking the view that business should be able to support itself without being 'propped up' by government. Senator Carr asserts that Toyota Australia's level of success here and abroad offers a counter-argument and government funding is not only helpful for Toyota, it's good for Australia too.
"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."
"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."
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