Hybrid Future: Healing The Car Industry

By Feann Torr - 11/June/2008

Melbourne, Australia — Petrol prices have been rising solidly for more than five years now and the Australian auto industry has been slower to react to this than other countries, and it shows on the sales charts.

Australian-made vehicles now make up only 1 in 5 new car purchases, or 20% of the Australian new car market which totals about 1 million new cars each year.

Sales are down and interest in locally-built large cars is waning as fleet buyers seek to reduce their carbon footprints and private buyers look to reduce their fuel bills, both switching for smaller 4-cylinder vehicles.

With Toyota's announcement that it would build the first hybrid car in Australia from 2010, alongside a beaming Australian Prime Minister, one wonders if hybrids are indeed where Australia's car manufacturing future lies?

One thing is certain - Australian-made cars now need to be efficient and green.

Australia has just recently committed to slashing CO2 emissions by 60% in 2050. Japan has gone further, it's government pledging to reduce carbon dioxide output by even more, 80% by 2050.

Together with large cuts in greenhouse gas emissions, the Australian Government has also set up the Green Car Innovation Fund, which was helpful in securing the manufacture of Toyota's hybrid Camry in Australia.

The Australian government's $35 million investment in Toyota's Altona plant west of Melbourne is the first of many cash injections for green car initiatives. 

Yet there is still a huge amount of capital remaining in the Green Car Innovation Fund, much of which could be invested with Ford and Holden.

After Toyota's $35 million handout, there's $465 million dollars remaining for any car maker who builds a green car in Australia - and 'green' doesn't necessarily mean a 'hybrid' car according to the Prime Minister.

"This framework green car innovation fund is open to other fuel-efficient innovations and technologies and of course, to other motor vehicle manufacturers," said PM Rudd.

After signing the historic deal with Toyota in Japan, the Federal Government's Industry Minister, Kim Carr, jetted off to Detroit where he is to meet with General Motors (Holden) and Ford.

Several hundred million dollars will no doubt be dangled in front of Ford and GM to convince them to build green cars in Australia, and we'll hear about the fruits of these meetings in the coming months as more announcements are made.

Hybrids are a good idea and will help to reduce CO2 emissions and increase fuel economy, but they are not the be-all and end-all answer to low emission motoring.

There are also a range of small diesel cars from Peugeot and Hyundai for example that can match most hybrids like the Toyota Prius hybrid in terms of efficiency and will better the upcoming hybrid Toyota Camry in 2010.

Hybrid cars are a step in the right direction, and will be the bridge the gap between current cars, and next generation zero emissions vehicles. It is not yet clear whether hydrogen-powered cars will become mainstream vehicles in the future as they have been, and still are, prohibitively expensive.

Whether zero emission plug-in electric cars take off is another question that remains unanswered, but it's promising to see the options are growing.

The news that Toyota will build 10,000 hybrid Camry's in Australia from 2010 is good news for the local car industry, and is a sign of things to come. 

On the road, the hybrid Camry will cost around $35,000 and will offer fuel consumption of around 6.0L/100km, using about 30% less fuel than the standard 4-cylinder Camry.

Ford will begin building smaller, more efficient cars (Ford Focus) from 2011 and is looking at introducing diesel engines to its Territory and Falcon ranges in the new decade, when it swaps over to V6 engines.

Holden meanwhile is also believed to be working on a hybrid Commodore which is expected to benefit from the Green Car Innovation Fund, and later in 2008 GM Holden will debut the Series 2 VE Commodore with V8s that can switch off 4-cylinders during highway driving to reduce fuel usage by around 10%.

There is also the possibility that new incentives will be implemented to increase the appeal of hybrid and other vehicles with low emission technologies to private buyers, similar in effect to the previous government's LPG rebate scheme.

Are the days of large engines in heavy cars coming to an end? Not just yet, but changes to the local car industry are making big headlines as green technology takes hold in Australia. 

From turbocharging, to hybrids, diesels to ethanol-powered cars and cylinder deactivation systems, the future of the Australian car industry is rapidly becoming cleaner and more efficient, which is a positive outcome when you consider that petrol prices could reach $2.00 per litre in 2009.

If the Australian dollar wasn't so strong and was more conducive to exporting, the sky would be almost cloudless.

Related articles:
- Australian Hybrid: Toyota Camry (2010)
- Holden Commodore Hybrid (2010)
- Ford Focus: Australian-Made (2011)
- BMW Hydrogen 7 (2007)
- Volkswagen Golf TDI Hybrid (2009)