Toyota will announce plans today to build hybrid cars at its Altona plant in Melbourne from 2010. Production is expected to reach 10,000 units within 3-4 years.
The Japanese auto giant plans to make the Toyota Camry Hybrid in Australia by using existing production lines for its standard Camry model.
The announcement, to be made by Kevin Rudd while he visits Toyota’s HQ in Nagoya, comes after months of high level talks involving industry minister Kim Carr and senior Toyota executives.
The news comes days after Holden announced it will cut over 500 jobs by ceasing production of four-cylinder engines by the end of next year.
Holden has been criticised for slashing the jobs before the completion of the Bracks review into the car industry but the company insisted reduced export demand for its Family II engine had resulted in its four-cylinder Melbourne operation being reduced to less than 50% capacity.
While Holden said the 27-year-old engine had reached the end of "its life cycle", Carr said the engine would not be able to meet emission standards in its key export markets.
"This highlights the pressure on the industry as a whole to adapt to climate change and the need for fuel efficiency," he said.
Toyota is also expected to start production of the hybrid Camry at its Thailand plant, scheduled for later this year.