13th December, 2001

$321 million Aussie production boost

Toyota Australia announced today that it will spend $321 million on the introduction of a new Camry model, a new four-cylinder engine and increased production capacity at its Altona plant.

The huge increase in production capacity will see output from Toyota’s Victorian plants increase by around 15 percent, from 100,000 to 115,000 units per annum from the last quarter in 2002 to meet anticipated domestic and export demand.

An additional 150 people will be employed at the company’s Altona and Port Melbourne operations as a result of the planned expansion.

The decision to increase production capacity will correspond with the release of a new model Toyota Camry on to the Australian market, with production scheduled to commence in August 2002.

Continuing to be sold both in Australia and to overseas customers, the Australian-made Toyota Camry is the best selling vehicle in the medium passenger car segment as well as Australia’s number one export vehicle.

Toyota will also build an all new four-cylinder, 2.4 litre engine (345F) with improved fuel economy, lower emissions and improved performance.

This will be the first Australian built engine with an aluminium block using high-pressure die-casting, and will adopt Toyota’s latest Variable Valve Timing Intelligent (VVTi) technology. The engine will be capable of meeting stringent European vehicle emission standards (Euro 2 & Euro 3).

The new capital investment program will result in a significant increase in local content for both the new model and new engine.

Increased localisation of vehicle and engine components is a high priority for Toyota to enhance the capacity and technology of local automotive supply companies to meet the requirements of local vehicle manufacturers. It also helps reduce volatility in costs of imports due to exchange rate fluctuations.

Mr Ken Asano, president and chief executive of Toyota Australia, said the new investment demonstrated Toyota’s ongoing commitment and confidence in the Australian automotive industry.

“The automotive industry benefits from a favourable investment climate here in Australia, “ said Mr Asano.

“The Federal Government’s Automotive Competitiveness and Investment Scheme (ACIS) has provided valuable support for local manufacturers and supplier companies to undertake new investment and expand production capacity.

“The Victorian Government has also provided valuable assistance, particularly in facilitating increased localisation of components for the new engine.”