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 ALP, Libs squabble over car plant 

ALP, Libs squabble over car plant

28 Jul, 2010 01:00 AM
A WAR of words has broken out between the state's major parties on the future and sustainability of Toyota's Hybrid Camry produced at the Altona plant.

State Altona MP Jill Hennessy and Williamstown MP Wade Noonan hit out at what they claim is a plan by the Liberal Party to "abandon" support for the Altona plant.

"The Liberal Party called the project at Altona a flop and a failure," Ms Hennessy said. "Are they seriously suggesting they would continue with the project after criticising it in this way?"

But the shadow minister for manufacturing, Ryan Smith, denied the claim and said the Liberals had no intention of withdrawing support for Toyota.

"Our reason for raising the matter was to gauge how much money the state government had invested in the [hybrid] project and the value of that investment," Mr Smith said.

"Based on what we've seen since the project got off the ground in 2008, we estimate the government has contributed about $35million.

"If I was manufacturing minister, I would investigate where we could get the best bang for our money and there are several ways to wean cars off petrol, so we would look at other available options."

But Ms Hennessy would not divulge the amount the government has provided. "I understand the government does not disclose the actual dollar figure of support so as not to commercially expose the company."

Mr Noonan said sales of the Hybrid Camry were still in their early stages and he was confident consumers would embrace the model in future.

Ms Hennessy said the car was manufactured at Altona, but Mr Smith said it was only assembled at Altona. Toyota prefers to use the term "build".

Toyota's Glenn Campbell said the car was built at Altona's manufacturing plant from a combination of parts from Australia and overseas suppliers.

"Components used in hybrid systems, such as the batteries, inverters and motors, are imported from Japan for the time being. But with future generations of Hybrid Camry, the involvement of local suppliers could expand. More than 50 hybrid-unique parts are sourced from local suppliers. Major car components, such as glass, drive shafts, brakes and wheels, are locally manufactured."

Hybrid sales in Australia have been sluggish, but Toyota remains confident of better figures. "With Hybrid Camry, we are launching a new brand, not just a new vehicle," Mr Campbell said. "Taking up this new technology by the mainstream market was always expected to take some time, and sales are on track.

"Car production has a long cycle, and it's important to view the investment as a long-term strategy."

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