Aussie-built hybrid hope

A PETROL-ELECTRIC hybrid vehicle is emerging as a strong contender for Toyota Australia’s third vehicle line at its Altona production facility as the global oil crisis bites.

Such a vehicle would be vital in helping the Australian operation maintain its international competitive edge within Toyota’s global empire as well as its strong position as a manufacturer in this country, according to Toyota Australia executives.

The vehicle, which would be built alongside the Camry and Avalon, could be up and running by 2009.

"We are now having discussions about where we need to go from 2009 and beyond," Toyota Australia’s executive director of sales and marketing, David Buttner, told GoAuto last week.

The news comes as alternative-powered vehicles featured prominently at last month’s Frankfurt auto show and has already become a hot topic among the world’s major manufacturers in the lead-up to this month’s Tokyo motor show.

Toyota Australia is currently spending $400 million upgrading the Altona plant with a global body line that will allow it to build the next-generation Camry and Avalon models as well as one other vehicle on the same modular production line.

The new Camry will be launched mid-next year, with the Avalon following two or three months later. Toyota has embarked on a tricky strategy that will see the Camry revert to a (2.4-litre) four-cylinder model only, leaving the Avalon to be a prestige (3.5-litre) V6 offering.

Mr Buttner confirmed Toyota’s intention to go with a third, and possibly hybrid-powered, vehicle down its Altona production line during a ceremony last week marking the production of the 10 millionth Camry globally, which conveniently coincided with the company’s first delivery of 1500 Toyotas to Australian Commonwealth Games officials.

Toyota’s involvement in the Games is believed to be worth between $3 million and $5 million, in addition to the value of the vehicles.

Apart from an Australian-built Camry hybrid or Prius hybrid, both of which were referred to by Mr Buttner as contenders, the company is also considering a small four-wheel drive wagon.

A diesel-powered Camry is low down the priority list. Mr Buttner refused to be drawn on which vehicle was in favour, except to say that there was "no reason" why a hybrid could not be built at Altona.

"We would be very keen at some time in the future to have a locally-manufactured hybrid vehicle," he said. "Anything is possible. We’re keen to embrace it." He acknowledged that there had been a lot of speculation on the third vehicle being a 4WD wagon, a proposal the company had examined closely.

"While that is always on our horizon, at the moment we feel that the plethora ofCBU (completely built up) products we have in that marketplace with RAV, Kluger,LandCruiser 78 and 100, we’re well positioned in that market," he said.

"So there is no imminent plan to take on production of a local SUV. "But we still have the flexibility to do that." The economies involved in building a hybrid vehicle on Australian soil would doubtless make it an attractive proposition for fleet and private customers alike, and would supplement Toyota Australia’s current sales volume of the Prius, which is constrained by supply to around 100 units per month.

Mr Buttner said Toyota Australia could be selling twice that amount if it had the cars.

Last year, Toyota Japan doubled global output from 10,000 a month to 15,000 a month and some analysts suggest hybrid demand could grow to more than one million vehicles a year by 2010.

The first-generation Prius initially enjoyed four per cent market penetration among private buyers in Australia, with most sales going to green-friendly government agencies, according to Mr Buttner.

However, the Prius II is enjoying a private buyer take up of 38 per cent.

"Our desire is naturally over time to take advantage of what our parent is developing and introduce further fuel-efficient products into the Australian marketplace," Mr Buttner said.

Toyota Motor Corp has confirmed it will sell a petrol-electric hybrid Camry alongside petrol versions in the United States when the new car goes on sale there next year.

Mr Buttner said the Australian-built Camry and Avalon would be world-class vehicles with leading-edge technology.

"(Camry) is going to be a step ahead again in terms of technology," he said.

"It will have a distinctly Australian component, which is what we’ve tried to do with our Camry models to tune them to Australian conditions."Toyota engineers have done a significant amount of work on "Australianising" the two cars. As part of the $400 million spend on upgrading the Altona production line, the facilities are also being expanded with a new body side stamping press and bumper facility to cope with building an extra 20,000 vehicles a year.

Toyota plans to lift Altona production from 110,000 to around 130,000 a year, boosted by increased exports. The company will export 64,000 Camrys this year and intends to continue to grow its offshore business. Last year, it exported 66,000 Camrys worth $1.2 billion in revenue.

"The investment will keep us globally competitive in terms of innovation, cost control and, most importantly, being the best-quality producer in the world among the Toyota manufacturing plants," Mr Buttner said.

"All Australian car-makers are facing increased competition from low cost overseas plants.

"There are a lot of other plants who’d like to get our business and we’d like to get theirs... it’s very competitive in the Toyota world of manufacturing."