Corolla will not be built here

Ford and Holden are both committed to new compact contenders, the Focus from Ford and a yet-to-be-named small car from Holden, but Toyota has ruled out any move to make the Corolla downunder.

The car will not fit on to the current production line at Altona which is set up for the Camry and V6 Aurion and Toyota Australia does not believe it can make enough money on a Corolla-sized car despite the commitment of its local rivals.

"We have no (Corolla) plan at this time," says the president of Toyota Australia, Max Yasuda.

"We do have a plan to produce a hybrid at Altona. I think Camry hybrid is a good car to compete with small cars in terms of fuel efficiency.

And, of course, for the family it is better and a roomier car.

But Toyota Australia is looking to spread its local production, and open new market sectors, as Ford and Holden plan with smaller stablemates for the existing Commodore, Falcon and Territory.

It has looked several times at local production of the Kluger people mover, which shares its mechanical base with the Camry, as a way to smooth the model cycles of its existing cars and build a stronger supplier base in Australia.

"We do have some plan under study to introduce something different from the sedan, but we have not yet reached any consensus or decision," Yasuda admits.

"It is still at a primitive study phase. I want to have something different. But it would be using the same platform."

Could it be the Kluger?

"Maybe. Maybe. But, as I said, it is still at a very primitive phase of study," Yasuda says.

Committing to a third model — Toyota does not regard the 2010 Camry hybrid as a separate model — would have to increase both local and export sales, as the change would mean massive investment at Altona on a second paint shop.

"The market trend right now is not really exciting to talk about incremental volume," Yasuda says.

He is now planning to a status-quo result from 2009, with Middle East exports holding firm and a tickle later in the year for the Camry and Aurion to renew customer interest.

"We hope to be about the same level as last year, which is over 100,000 exports to the middle East. Middle East is less impacted , but . . . they are expecting some downturn this year.

"We are planning a minor change, a facelift, in the third quarter of this year so it should stimulate some demand. It is a big minor change.

"And also we introduce the hybrid in the early part of next year, 2010. That should also have an impact on our volume."

Yasuda is committed to hold prices on the locally-made Toyotas despite rises on imports which have already begun following a major currency slide in the second half of last year.

"The locally manufactured cars, we do not raise the price. We hope to keep our prices as reasonable as possible. But a 40 per cent change in exhange rates from a few months ago is a huge impact."

But another year as Australia's best selling brand, with sales better than the combined results for Ford and Holden, has Toyota tracking well and on track for another year as market leader.

"It is very challenging, but we do make some profit," Yasuda says.

"If we can keep the market share we will be number one, for sure, in 2009."