Toyota Corolla not ruled out for Australian production: Toyota

[Brazen]

In my opinion Yasuda's comments about Holden building the Cruze is certainly him angling for government money. He is saying if Holden can build Cruze here, we could build Corolla.

Manufacturing will be an election issue for Labor, I could see hundreds of millions of dollars in government co-investment for a new vehicle for Toyota. I also think Corolla is more possible than people realise. It's Toyota's biggest selling car in Australia and is one of the largest markets for the Corolla in the Southern Hemishpere. With government funding the cost calculations change dramatically. Holden could not have cost effectively build the Cruze here without government funding, it will be same for Toyota.

Kluger is a strong possibility as Japanese production ends soon and the only other plant at the moment is US where they build LHD.

My take, I think the Rav4 will be built here as the new 2.5 Litre engine plant being built in Victoria is the engine that will power the next Rav4. Corolla would compete with Cruze and Kluger with Territory, so I dont think the government will be as keen to co-invest in vehicles which compete with other locals. The compact SUV market is the next big boom in Australia and highly profitable. When Ford was considering local Focus, the Kuga was mentioned by Ford as a very strong possibility.


http://www.caradvice.com.au/157529/c...uction-toyota/

By Jez Spinks | February 03rd, 2012


Print page

Toyota says it has not ruled out producing the Corolla small car in Australia as it contemplates its future local manufacturing operations.

The local car maker’s boss, Max Yasuda, told the Australian Financial Review yesterday that the company could consider building a small car if it could establish that Holden was capable of making a viable business case for its Cruze.

“I have to find out how Holden is making the business of small cars feasible. If they can do it, we can too,” Yasuda told the AFR.

A source close to the company has told CarAdvice that Toyota started looking at the business case for a locally built Corolla after Holden confirmed in early 2009 that it would add the Cruze to its Adelaide assembly plant, alongside the Commodore.

Ford Australia had also announced it would build the Focus small car locally before making a U-turn to use government money on more fuel efficient variants of the Falcon large car and Territory SUV.

Toyota Australia, when pressed on the comments from Yasuda and CarAdvice’s source, would only add officially that various options for local production were possible but that the company was in the process of strengthening its current set-up where the Camry medium car and related Aurion models are assembled in Victoria.



“Anything could be under consideration [for local production] from time to time, but our current focus is on improving the competitiveness of our existing operations and building a stronger foundation for future growth,” said a Toyota Australia public affairs spokesperson.

The company recently announced 350 employees would be axed in response to reduced exports of the Camry to the Middle East as a consequence of the global financial crisis and high Australian dollar.

A Toyota insider told CarAdvice that the Kluger SUV was still a more likely candidate for a new model line at Altona, a vehicle that has been openly considered in previous years.

The Kluger – pictured below – is based on the Camry and would therefore involve less complexity compared with the smaller Corolla.



The Corolla is by far Toyota’s best-selling vehicle in Australia, and consistently one of the most popular models in the country.

In the latest official industry sales figures, for January, Toyota sold 3383 Corollas – accounting for 24 per cent of the company’s 14,065 sales for the month.

Small cars have long surpassed large cars in Australia as the dominant vehicle type, and in January accounted for 19,367 sales compared to 4713 large cars, which include the Toyota Aurion, and 6356 medium cars, which include the Camry.



The Mazda3 small car is currently the best-selling vehicle in Australia, while the Cruze (shown in local production above) last month became the first Holden to outsell the Commodore since the large car launched 34 years ago.

Small cars, however, typically reap a smaller profit than larger cars. Holden has admitted previously that it would have to monitor its costs better if the smaller Cruze was to emerge as a more popular product than the Commodore.

Toyota has built the Corolla previously in Australia – from the late 1960s at Port Melbourne and more recently in the 1990s when it became the first car to be built at the current Altona plant.

[falconnut]

With the AUD $ so strong i doubt Toymoco will risk it but hay, it would be good for our economy, i hope.

[Brazen]

Originally Posted by falconnut

With the AUD $ so strong i doubt Toymoco will risk it but hay, it would be good for our economy, i hope.

Ironically with the high Aussie dollar, getting more local production such as domestic Corolla or others is crucial as Camry exports are falling, with significant government investment the numbers may start to add up.

[Chopped]

Make this one please >

Toyota Blade Master G - http://www.themotorreport.com.au/129...r32-challenger

[Bossxr8]

The thing is Ford and Toyota can not figure out how Cruze is viable for Holden. They have both done a total cost analysis on it and have come to the assumption that Holden aren't making a cent on it.

Good luck trying to figure out a reason Holden can make Cruze viable, cause there isn't one. I think Holden smudged the figures on it to make it seem viable so GM wouldn't shut them down.

[Brazen]

Well looks like Kluger is ruled out as a possible third vehicle at Altona, with spending 375million in the US to make right hand drive ones.

http://www.caradvice.com.au/158636/t...-us-from-2013/

Toyota Kluger vehicles sold in Australia will be imported from the US from 2013 after Japanese production of the large SUV ends late next year.

Toyota Motor Sales USA confirmed it would take over exports of the Kluger (known as the Highlander in overseas markets) to Australia and Russia from late 2013, with plans to expand production at its Princeton, Indiana plant by 50,000 units annually.

Toyota will invest US$400 million ($375 million) in the Toyota Motor Manufacturing Indiana (TMMI) facility and employ an extra 400 workers to support the production shift. Kluger models sold in Australia are currently produced at Toyota Japan’s Miyawaka, Fukuoka plant.

Toyota confirmed TMMI would continue to build a hybrid variant of the Kluger after the production shift, but there is no word of a long-awaited diesel model at this stage.



The announcement seemingly puts a dent in any prospects Toyota Australia may have to manufacture the Kluger locally alongside the Camry and Aurion. The popular large SUV shares its platform with the medium-large sedans that are assembled at Toyota’s Altona plant in Melbourne.

Earlier this month, Toyota Australia president and CEO Max Yasuda confirmed he had not ruled out adding a third vehicle line to its local operations, with the Kluger and top-selling small-sized Corolla the two best candidates.

The Kluger was the second highest selling large SUV in Australia in 2011 behind the locally made Ford Territory, with 11,692 Klugers sold across the country.

[gtjohnny]

i work at toyota and was talking to my boss ...he basically said in 8 years there will be bear concrete were toyota is right now

[Yellow_Festiva]

Originally Posted by gtjohnny

i work at toyota and was talking to my boss ...he basically said in 8 years there will be bear concrete were toyota is right now

Of course. Many people don't understand that workers in many parts of the world consider $5 a day a good wage.

Only a matter of time. Business need any edge to keep their heads above water.

[Bossxr8]

Originally Posted by gtjohnny

i work at toyota and was talking to my boss ...he basically said in 8 years there will be bear concrete were toyota is right now

So why are they building a new engine plant?

[gtjohnny]

we ask that all the time cause its being built right behind my area but the main thing i hear is toyota wont hesitate to pull it all down ........also they dont make much money on the cars they build at altona they make the money off the parts they sell toyota makes 8 million a week off parts or so i hear .

[Joe5619]

Originally Posted by gtjohnny

i work at toyota and was talking to my boss ...he basically said in 8 years there will be bear concrete were toyota is right now

What is the job title of your boss? The asnwer to this question will drive my next comment!!

[XD 351 Ute]

Originally Posted by gtjohnny

i work at toyota and was talking to my boss ...he basically said in 8 years there will be bear concrete were toyota is right now

No there won't. because our concrete plant is going to shut down before then....

Ed

[Luke Plaizier]

“I have to find out how Holden is making the business of small cars feasible. If they can do it, we can too,”

What I actually read from this is that Toyota have been unable to make small cars feasible in Australia. Ford have come to the same conclusion too.

The big gist of this initial story seems to be that Toyota doubt that Holden have got a viable business case or are getting a return.

Pity about Kluger. I thought Australia was in with a good chance of RHD production there. That, and the Ford Ranger, are two cars large and profitable enough to have been able to make money in Australia.



Lukeyson

[jpd80]

Small cars do not add enough profitability to Aussie plants as a free standing product.
Everyone is looking at production (units made) but the question should be money earned.

It's far better to add the Mondeo to Broadmeadows before even considering Focus.
They cost about the same to build but the Mondeo commands a much higher price.

[Brazen]

It's amazing how things become viable when you are given 200 million to do it.

[aussie muscle]

Originally Posted by Bossxr8

The thing is Ford and Toyota can not figure out how Cruze is viable for Holden. They have both done a total cost analysis on it and have come to the assumption that Holden aren't making a cent on it.

Good luck trying to figure out a reason Holden can make Cruze viable, cause there isn't one. I think Holden smudged the figures on it to make it seem viable so GM wouldn't shut them down.

i assume holden are betting on Cruze taking over commodore.

[Brazen]

Originally Posted by aussie muscle

i assume holden are betting on Cruze taking over commodore.

Yes its almost a certainty, talk of local production of wagon and a performance 2.0T. Then down the track a plug-in Hybrid or EV and maybe a SUV off the same platform. It will be the FJ Holden of the next decade.

I think premium and V8 Commdores will be become a larger percentage of Commodore sales while the fleet and family markets will continue to desert it....plus its old.

[Brazen]

Originally Posted by Luke Plaizier

“I have to find out how Holden is making the business of small cars feasible. If they can do it, we can too,”

What I actually read from this is that Toyota have been unable to make small cars feasible in Australia. Ford have come to the same conclusion too.

The big gist of this initial story seems to be that Toyota doubt that Holden have got a viable business case or are getting a return.

Lukeyson

If a European or North American had said that I would probably agree. But dealing with Japanese people, they dont use language in the way you describe. They dont have that level of sarcasm embedded into their language that us Westerners have. I would assume he was being sincere about making local Corolla work rather than having a dig at Holden.

I think with exports in danger now, a third model is vital for Toyota, I think this year is crunch time for them.

Likewise with Ford, when Burela cancelled Focus I honestly thought it was one of the worst news regarding Ford AU in its history, as it meant to me there was no long term plans. What gave me solace was the thought that the cancellation meant that the next Falcon must be a huge export earner hence Focus production wasnt necessary to build volumes.. looking at the high AUD I am worried that the prospects of an exportable Falcon is diminishing.

[Poetic Justice]

Interesting that Kluger will come from the US. Should only be a matter of time before Hybrid Kluger arrives then!

[gtjohnny]

Originally Posted by Joe5619

What is the job title of your boss? The asnwer to this question will drive my next comment!!

my gf so above my group leader but below the manager

[Brazen]

Another article about a third model line if it happens, money is on Corolla or Rav4
From about two years ago I though Kluger was out simple because Toyota's language changed from building something 'compatible to Camry' to 'something that we see market trends are heading towards'. Also toyota have long said they 'build where they sell' meaning Corolla or Rav4.

Still think this is a big possibility of government money. I was reading an article that Labor bounced a few percentage points in the polls recently when it seperated itself from the coalition on car industry assitance. Even though many of us drive imported we still have a fond nostalgia of the local cars we had when growing up - the electorate seems to respond positively to it.

http://www.goauto.com.au/mellor/mell...2579A40008E1D9

Toyota to source Kluger from US instead of Japan, ending chances of local production
14 February 2012
By MARTON PETTENDY
TOYOTA Australia’s next-generation Kluger will be produced in North America from late next year, ending any chance of it being manufactured at Altona alongside the Camry and Aurion until at least next decade.

Last week’s announcement, which eliminates the mid-size SUV as an option in Toyota Australia’s decade-old desire to add a third model line at its Victorian facility, follows the cessation of Kluger production next year in Japan, where Australia’s current model is built.

As GoAuto revealed exclusively in January 2009, to guarantee continued local availability of the third-generation Kluger, due around 2013, Toyota Australia would have had to either build the vehicle itself or secure right-hand drive production from China or the US.

Toyota last week confirmed it would do the latter, by increasing production of the Highlander – as the Kluger is known in the US – at its Princeton plant from late 2013, following a $US400 million ($A373m) investment and the addition of 400 jobs at Toyota Motor Manufacturing Indiana (TMMI) to satisfy export markets including Australia and Russia.

“The company will invest about $400 million to support global demand for the Highlander, which will no longer be built in Japan by late 2013,” said Toyota Motor Corporation.

Left: Toyota Australia chief Max Yasuda. Below: RAV4, Corolla, Camry and the Altona plant.

“Toyota builds Highlander in China for that market only. Annual Highlander production volume is expected to increase by approximately 50,000 units at TMMI.

“Highlander is currently sold in Russia and Australia, and TMMI will export to those countries.”

Toyota Australia would not comment on the announcement’s impact, if any, on its hopes to add a third model line at Altona – which date back to 2003 – instead saying that its first priority was to shore up the viability of its Victorian manufacturing operations.

Last month Toyota Australia announced it would cut 350 jobs in response to “current operating conditions”, including a slump in exports to the Middle East, the strong Australian currency and the global financial crisis.

Toyota Australia public affairs manager Glenn Campbell told GoAuto that Toyota Australia had from time to time studied the opportunity to add a new model to the production line-up at the Altona plant.

“These studies are internal and are a normal part of the long-term planning process,” he said.

“Toyota Australia’s current priority is to improve the cost competitiveness and efficiency at the Altona plant.

“We are unable to speculate on future product offerings. Kluger is one of many vehicle options that could be considered if a new model was introduced at the Altona plant.

“We are unable to provide detail on product plans, as we do not speculate on future product offerings.”

Earlier this month Toyota Australia chief Max Yasuda told The Financial Review it could consider building a small car if it could establish that Holden had made a successful business case for local production of the Cruze small car.

“I have to find out how Holden is making the business of small cars feasible. If they can do it, we can too,” Mr Yasuda told the AFR.

Holden confirmed in late 2008 that it would produce the Cruze alongside the Commodore in Adelaide, after Ford had backflipped on a similar plan to produce the Focus in Broadmeadows and instead invested in the Falcon and Territory.

Both strategies involved financial support from the federal government and Toyota told GoAuto at last year’s Melbourne motor show that its own third model line discussions continued at a “primitive” stage despite the demise of the Australian government’s Green Car Innovation Fund.

“I’m asking our sales and marketing people to really understand the market trend in Australia … and based upon this study I think we can come up with some idea about which model we should produce here,” Mr Yasuda told GoAuto last July.

Toyota Australia has always said that if it produced a third model at its Victorian plant it would be based on the Toyota Modular Platform (TMP) or ‘MC’ chassis architecture that underpins the Camry and Aurion, meaning that in theory it could assemble anything from the Kluger, Venza, RAV4 and Lexus RX SUVs, to small cars including the Corolla, Prius or even the Lexus CT200h.

With the final nail placed in the coffin of Toyota Australia’s original plan to manufacture the Kluger here – revealed by GoAuto in 2003 – next-generation versions of the Corolla and RAV4 remain the most likely prospects for production at Altona.

Both models are due for renewal (the MkIII RAV4 was released here in February 2006, while the Mk10 Corolla arrived in May 2007) and both will be based on variations of the new Mk7 Camry’s latest TMP underpinnings.

Last year Toyota sold more than 36,000 Corollas (down 13 per cent), a model that has been usurped by the Mazda3 as Australia’s top-selling small car but remains Toyota’s most popular model both here and worldwide. The booming small car market accounted for almost a quarter of the million-plus vehicles sold in Australia last year, and has long eclipsed large cars as the nation’s biggest single sales segment.

If Toyota produced the Corolla at Altona it would not be the first time. The iconic Japanese nameplate was built in Australia from the late 1960s at Port Melbourne, later switching to the Holden plant at Dandenong under the ill-fated joint venture before becoming the first model manufactured at Toyota’s current Altona plant in the 1990s.

The RAV4, meantime, attracted more than 13,000 compact SUV buyers (down 10 per cent) in Australia’s fastest growing segment, making it Toyota’s fifth best seller here behind the Corolla, HiLux, Camry and Yaris.

Unlike the Corolla, however, the next RAV4 will be powered by the latest Camry’s 2.5-litre four-cylinder petrol engine, which will be manufactured in Port Melbourne from September this year.

Apart from giving Toyota Australia’s $300 million engine plant a much-needed boost in the face of dwindling Camry sales both here and overseas, local production of the similarly sized RAV4 could represent the company’s greatest sales growth potential – both in domestic and export terms – as well as its most modest plant investment.

Just as Toyota has now confirmed a hybrid version of the Kluger/Highlander will continue to be offered into the next generation (making a diesel version to rival Ford’s Territory even more unlikely), the next RAV4 will also come in hybrid form, powered by the same 2.5-litre petrol-electric drivetrain as the new Camry Hybrid due next month.

Irrespective of its third model line prospects, Toyota has said its local car-making operations will depend on some form of government subsidy beyond the life of the current Camry and next Aurion (due in April), in the same way that Ford’s Australian manufacturing future is certain only until 2016 and Holden’s is locked in for a further two years or so.

“For new investment we need some kind of assistance,” said Mr Yasuda last July. “For the current operations we are okay. Camry, hybrid Camry and Aurion production is all locked in – it’s what comes next after 2016-17.”

As part of the US Kluger manufacturing announcement, Toyota said it would boost annual production at Princeton from a current 280,000 to about 330,000 units in the second half of 2013, when it would commence production of the Highlander Hybrid and export versions of the petrol Kluger for Australia, Russia and other markets.

Toyota sold about 1.3 million examples of the Highlander (introduced in 2001) and Highlander Hybrid (introduced in 2005) in North America between 2001 and 2011, including more than 100,000 petrol models and about 5000 hybrids last year.

Established in 1996, Princeton employs about 4800 workers and also produces the Sequoia full-size SUV and Sienna people-mover.

Australia’s current Kluger and North America’s existing Highlander Hybrid come from Kyushu in Japan, but the MkIII model will not be produced there as part of Toyota’s new policy to build its vehicles where most of them are sold, and its desire to reduce exports from Japan due to a soaring yen that has undermined profitability.

The Kluger – Australia’s second best selling medium SUV last year behind the Territory – is also produced in China (since mid-2009) and Canada (since late 2008).

Also last week, Toyota announced a boost in annual capacity at its Karawang plant in Indonesia by 50,000 to 120,000 vehicles in an effort to keep pace with demand in southeast Asia’s top economy.

Toyota told Reuters it would invest an additional 15 billion yen ($A180.5m) at Karawang, which produces the Kijang Innova people-mover and Australian-designed Fortuner SUV for domestic and export markets including Thailand and South Africa.

[Mr Hardware]

I'd love a corolla with the camry's 2.5L 4cyl 135kw donk

I used to own a corolla built in Australia - an AMI-Toyota one.

[Bossxr8]

Originally Posted by aussie muscle

i assume holden are betting on Cruze taking over commodore.

Which will result in huge losses for them. Cruze profit must be tiny, Commodore would be multi thousands of dollars. Small cars don't cost much less than large cars to build yet they are selling them for half the price.

Cruze outselling Commodore is not a good thing for Holden in the long run.