Toyota awaits subsidy

Toyota will wait for an Australian Government hand-out before it decides whether to push the button on a third model line and a likely hybrid.

But firm plans for a third vehicle to join the Camry and the V6-powered Aurion on the Altona assembly line in Melbourne will have to wait until after the fast approaching federal election.

A Camry or Aurion petrol/electric hybrid is almost certain as Toyota continues its green message.

Speculation on a third model has heightened at a time when Toyota has launched the second-generation Kluger SUV, which is delivering a front-drive variant for the first time.

There is little chance a hybrid version of the recently launched second-generation Kluger will make it to Australia. As the sole major right-hand-drive market for the Kluger, there is almost no chance of Toyota giving the go-ahead for one here.

David Buttner, Toyota Australia's executive director of sales and marketing, says an Australian-built Camry or Aurion hybrid is a strong possibility but will not occur until the next model cycle in about 2011.

“We want to build a hybrid in this country and we want to build one at Altona,” Buttner confirmed.

“We're now talking about Camry or Aurion and it's the right time with the mood at the moment and the governments are seen to be green.”

There are increasing numbers of private buyers of Toyota's Prius hybrid sedan, accounting for about 39 per cent of sales, as opposed to predominantly government orders for the expensive $37,400 sedan.

“While government demand remains strong for the Prius there is a real shift in thinking out in the market about hybrids,” Buttner said.

“So if we can be first to market (with a hybrid Camry or Aurion), I think it gives us a lot of credibility in the marketplace.”

The global body line Toyota has in place at the Altona assembly plant has the flexibility where platforms can be rolled in and out and it can handle three sizes.

“We have got no firm plans on the drawing board to fill that with a specific model just yet,” Buttner said.

“The government has shown a lot of interest and we believe there would be something forthcoming from the government.

“There's been a few grants handed out lately with Ford and GM for research and development-type projects and we haven't been a recipient of one of those funds yet and we haven't put our hand up.

“But if we go forward, possibly with hybrid, we'd certainly put our hands up and certainly be having some discussions with the government.”

Buttner said it would not make sense to make hybrid versions of both the Aurion and Camry because initial demand would not be enough.

Costs of hybrids have come down as economies of scale and production techniques have changed.

“When it first started with the Prius being built in Japan in an offline-type situation, that's expensive production. But now it's thrown into the mainstream production line and you've got a couple more suppliers who have come on-stream so the cost will come down.”