Toyota Lands Oz Backing for Car Program, Supplier Development

Toyota Australia gets more government money and announces it will build a major facelifted vehicle beginning in 2015, as well as expand its supplier-development program during the next five years

The A$123 million ($109.5 million) project is drawing a subsidy package from both the federal and Victoria state governments. Canberra is providing a grant of A$23.6 million ($21 million) and there is an undisclosed amount coming from the Victoria government.

Toyota does not say which of the models built at its Altona, Victoria, plant will be upgraded. The auto maker produces the Camry, Camry Hybrid and Aurion there.

In addition, the federal government will put A$5 million ($4.4 million) toward Toyota Australia's supplier-development program over a 5-year period.

Toyota Australia will spend a total of A$108 million on the vehicle facelift and A$15 million ($13.2 million) on the supplier-development program.

Toyota Australia President and CEO Max Yasuda says the investment is a critical step in remaking the auto maker.

“Local manufacturing is an integral part of our business and is a key focus of our 5-year companywide transformation program,” Yasuda says in a statement. “The investment ensures that Toyota Australia continues to build high-quality vehicles for our local and overseas customers.”

Toyota Australia exports about 70,000 Camry and Aurion vehicles a year, mainly to the Middle East, but with some going to New Zealand and the South Pacific islands.

Yasuda says the supplier-development program will see a team of engineers assisting parts makers in boosting productivity, diversifying their business operations and improving their global competitiveness.

“This program will help strengthen Australia's supplier base through the application and sharing of Toyota production system principles and best practice manufacturing techniques,” Yasuda says.

He notes the program might not have happened without federal and Victoria government involvement, saying they played an instrumental part in today's announcement.

“It is vital that we continue to have an ongoing partnership with governments to ensure the long-term viability of local manufacturing,” Yasuda says. “Today's announcement is a positive step forward. This investment was secured due to the enormous effort undertaken by many people at Toyota Australia during the past 18 months and the critical support of the Victoria and federal governments.”