$63 million to bring Toyota engine line to Victoria

The Gillard government will invest $63 million to bring production of Toyota’s next-generation, four-cylinder engine for the Camry and Hybrid Camry to Australia.

The grant, from the Green Car Innovation Fund, will be used to install cutting-edge plant and equipment. It will lead to a dramatic expansion and renewal of capacity at Toyota’s engine plant in Altona, Victoria.

The project will start immediately and be completed by late 2012, when the new line will start turning out over 100,000 engines a year - up to a sixth of them destined for hybrid vehicles.

This is a substantial investment in Australian manufacturing and a substantial step towards creating an economically and environmentally sustainable automotive industry. It will help anchor Toyota’s operations in Australia for years to come.

Support from the Gillard and Brumby governments has enabled Toyota Australia, and its parent in Japan, to make a timely investment decision and base the project in Australia.

The decision shows tremendous confidence in Australia’s innovative automotive sector and the capabilities of its suppliers and workers - including the 320 employees at Toyota’s Altona engine plant.

The new petrol engines built on the line will consume 4.5% less fuel and produce 5% fewer greenhouse emissions than today’s equivalent engine. This will cut carbon pollution by up to 20,000 tonnes a year. The locally produced hybrid engine - an Australian first - will consume just 6 litres of petrol per 100 kilometres and emit 142 grams of carbon dioxide per kilometre.

The Gillard government will continue to work with Toyota and the entire automotive sector to build a modern, innovative and green industry supporting high-skill, high-wage jobs.

The new grant complements the $35 million provided to Toyota Australia for the Australian-made, low-emission Hybrid Camry launched in February 2010.