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Toyota Aust, govts make 'critical' $123m investment

06 August, 2013

Toyota Australia will make a critical $123 million investment in its local manufacturing operations with the support of a co-investment package from the federal and Victorian governments.

The Federal Minister for Innovation, Industry, Science and Research Senator Kim Carr and the Victorian Minister for Manufacturing, David Hodgett, recently announced the co-investment package to build a major facelift vehicle.

The federal government is contributing $23.6 million towards Toyota's investment, with the Victorian government also supporting the proposal.

In return, Toyota Australia will invest in a vehicle that will ensure the company continues to build high quality products that appeal to its customers.

The federal government is also providing $5 million towards a $15 million supplier development initiative by Toyota Australia.

Under this initiative, Toyota Australia will work with local suppliers to build their capability by sharing manufacturing skills and know-how, benefitting supply chain employees from the shop floor through to CEOs.

"Toyota Australia's investment is part of a long term strategy to secure and strengthen its manufacturing presence in Australia, including its supplier base," Carr said.

"The government's contribution is a vital part of Toyota Australia's ongoing investment into its future operations.

"Australia is one of only 13 countries that can make a motor car from start to finish. The Labor government wants to retain the expertise, the investment, the cutting-edge technology and the high-skill jobs this industry attracts for generations to come."

Hodgett said that the Victorian coalition government was pleased to support the investment to help Toyota improve competitiveness across local and international markets.

"Toyota will be investing in capital, vehicle pre-production, design and engineering to ensure that its major facelift vehicle is an attractive and popular choice for Australian and international buyers," he said.

"Toyota is an important part of the Victorian economy, with the Camry produced here for the local and international markets," Hodgett said.

"Toyota employ many people in our state, and the Victorian coalition government is pleased to continue supporting this major local manufacturer."

Carr said through collaboration with Toyota, Australian suppliers can become more competitive, increasing their chances of winning new work both locally and globally.

"Toyota Australia's current success, combined with a long term strategic focus, sends a strong positive signal for Australian manufacturing generally and the Australian automotive industry in particular," Carr said.

"Government co-investment is fundamental to that future.

"At a time when automotive manufacturing has been under considerable pressure, this is an investment in securing thousands of manufacturing jobs and supporting the prospects of employees and their families."

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dave d | Friday, August 9, 2013, 10:13 AM
What we (the taxpayer)really want to hear from this is that the Victorian Government has invested Taxpayers money and in return will promise to use these vehicles as the Government fleet car -fat chance -unless it's a Limo they build!!
Jeremy Nathan | Friday, August 9, 2013, 10:16 AM
I guess that means there is a future for Australian car manufacturing. This adds to the debate on this subject happening on IndustrySearch's LinkedIn group: See http://lnkd.in/YEbNFB
Geoff A | Friday, August 9, 2013, 10:45 AM
Kim, you are correct in saying that Australia is one of 13 countries with the ability to make a motor car from start to finish, unfortunately, Toyota Australia is not one of the companies that can do it - they only build what is given to them by Japan, if you wanted to support this ability, you should have got behind Ford, who's Falcon and Territory were 100% Australian,
tommo | Friday, August 9, 2013, 11:59 AM
Yes we make the best air motor in the world too , and could create a whole new paradigm and industry but that company probably gets little help. www.engineair.com.au The article says we may be 1 of 13 countries that can make and design and engine and we ignore this simple stroke of genius from engine air. Citreon are making an air car, goes search google. The motor from Melbourne is better. It will go overseas. The Thomson bearing the biggest innoovation to universal joints invented here has got limited support. With help could be a multi billion dollar interest. If you have good technical idea ( samll, medium or large) the way this stupid country is ,just leave. When you realise there are 3000+ companies have closed since Labour got in despite 8700 starting last year, you then know they are THE DESTROYERS ON BUSINESS & PRIVATE SECTOR JOBS. They are not juts costing the owners of SME's money, but also their employees. if you a worker in private industry they are not your friends. They just add more management ( not front line) public service, thats what made the jobs figures better over the last few years and if you work a few hours per week you get counted . We had no federal debt and are now on our way to being owned. Not one of their budget figures have ever been right. SPIN AND LIES.
Hedley | Monday, August 12, 2013, 2:25 PM
We are all generally of a same-mind when it comes to what small businesses in engineering have on offer from our politicians. ie: some assistance; usually financial for developement; then some marketing support; venture capital even. This call for help is because we are the small business that does not employ staff with time to run around and chase this for us. We have to operate lean when it comes to keeping our cash flow ahead of the bank. So, most of us join our nearest business/industry group who may help guide us. I see that we may be at fault here. Perhaps our industry groups need to rewrite their charter to bring this "need" forward and give us some help. Perhaps Senator Carr just needs that contact to then point us in the right direction within his department. But then, when I discussed apprentice training with one of his Canberra staff, (family funeral 2012), I just did not get through. But willing to keep trying until another idea comes up.