Toyota's hybrid engine factory revs up

Toyota’s new $330 million engine facility in the outer Melbourne suburb of Altona is in action, but the company is trying to keep the news under wraps until it reaches full capacity. Toyota began installing locally-made new-generation four-cylinder engines to “customer ready” Camry sedans at its Altona facility last week after a series of trials since July.

Although the first locally-made Camry Hybrid engine is due to be built in the coming weeks, about 40 per cent of regular Camry models built last week had Australian-made engines. This ratio will increase gradually as the engine factory ramps up to full production in January, when an official announcement will be made.

“Production of the new-generation four-cylinder engine for Camry and Camry Hybrid has started and we’re looking forward to ramping up to full capacity in January,” said Toyota Australia spokeswoman Beck Angel. Toyota Australia had been importing four-cylinder engines from Japan since October last year while the Altona factory was being reconfigured for the new engine.

Australia was the first country outside Japan where Toyota established an engine plant, building engines locally since 1978. The new engine facility is the result of a $330 million investment, including a $63 million injection from the Federal Government and an undisclosed amount from the Victorian Government.

Toyota’s Altona factory is the largest producer of vehicles in Australia, with 94,000 assembled there last year, down from a peak of 149,000 in 2007. Three out of every four Toyotas made in Australia are exported, primarily to the Middle East. But the car maker says the new hybrid engine factory opens up new export markets – Thailand and Malaysia.

Toyota Australia’s Middle East export business has been hit hard with the strength of the Australian dollar. The car maker axed 350 jobs in April this year and increased the number of rostered “down” days to match output with falling demand. Toyota currently employs about 2500 workers at Altona, including 270 at the new engine factory.

Once at full capacity, the Altona facility will build 450 engines a day. When plans for the new factory were announced in September 2010, Toyota Australia President and CEO, Mr Max Yasuda, said: “The support provided by the Federal Government's Green Car Innovation Fund and the Victorian Government was a major factor in this project proceeding.”