Australia's very own Hybrid will be produced in Australia.

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Australia's very own Hybrid will be produced in Australia.

Toyota hybrid Camry deal for Australia wins $35m grant. Toyota will receive Federal grants of $35 million to produce hybrid Camry vehicles at its Altona plant in Melbourne, the PM says.

Prime Minister Kevin Rudd made the announcement in Japan late this morning, as Premier John Brumby also revealed details of the project for green petrol-electric cars at Toyota's Altona plant. The news comes as experts tipped Toyota's plans for a hybrid car would trigger a green technology race by other car makers. The news is expected to boost Victoria's struggling car-making industry. The move will give Victoria's spluttering car manufacturing industry a huge boost by building a new green model in Melbourne. The Japanese giant will take aim at the family car market with its first hybrid four-cylinder Camry in early 2010.

Toyota's Altona plant will manufacture the petrol-electric engine Camrys with an initial run of 10,000 to be built in the first year. * Bowser busters: Petrol puts brakes on economy

* Backyard filler: Biodiesel the good oil That could rise rapidly if the car proves a hit with Australians, who may be tempted to trade in popular sedans for the economical and environmentally friendly hybrid.

Car industry experts say today's expected announcement will lead to an explosion of green car technology locally. “The kind of response it's going to trigger from other manufacturers is to look at their own products and how they can be made more environmentally friendly,” MonashUniversity manufacturing specialist Richard Cooney told ABC Radio. “If this gives Toyota a leg-up in terms of the fleet market for vehicles then other automotive manufacturers are going to have to look at what Toyota is doing and find a business strategy to match that.” Having a hybrid car built in Australia would give local designers, engineers and manufacturers access to the latest green vehicle technology, Dr Cooney said. “It keeps Australia in the loop.” Unions have also embraced the deal. The Australian Manufacturing Workers' Union (AMWU) said the deal was good news for Australia's export future. “Any announcement regarding the production of green cars is a good announcement,” AMWU national secretary Dave Oliver told ABC Radio. “We've been saying for some time we need a plan for this industry as we start to consider the type of vehicles people will be driving in the next 10 to 20 years. “Not only for the domestic market but to position itself for export strategies.” Where a regular four-cylinder Camry consumes 9.9 litres of fuel per 100km. The Camry hybrid slashes that to 5.7 litres.

Hybrid Camrys produced in Japan and the US cost about 14 per cent more than a standard four-cylinder Camry.

A similar margin in Australia would add $4000 to the price of a basic Camry, edging it up to $32,500.

Mr Rudd hinted yesterday his $500 million green car fund could be used to help manufacture the new Camry.

"I want to see an Australian hybrid car as soon as possible," he said.

Mr Brumby's spokeswoman, Alison Crosweller, said the Premier was a fan of the green technology before his trip to Japan in February.

"He has been a strong advocate of hybrid vehicles and has made no secret of his desire to see one produced in Victoria," Ms Crosweller told the Herald Sun.

"He has spoken with the Prime Minister about this, and senior executives of Toyota on his recent trip to Japan."

The Toyota deal comes just days after Holden announced 500 jobs will be axed when it closes its four-cylinder engine plant at Fisherman's Bend next year.

The Toyota new deal is only expected to marginally increase jobs, but it provides a level of security for an industry that has faced great uncertainty in recent years.

With petrol prices soaring to $1.65 and expected to go higher, the deal is good news for families who can cut their petrol bill by more than 40 per cent with the new green Camry.

Mr Rudd said it would be good for motorists who liked Australian-made cars to have the hybrid option.

It would be another way of dealing with the "horrible impact" of rising petrol prices on family budgets, he said.

The hybrid technology has been very successful in Toyota's smaller Prius model, which is manufactured in Asia.

Mr Rudd has already promised to switch the government's 4000-plus fleet of vehicles to green cars.

And the Brumby Government is expected to include more hybrid cars in its fleet

RACV chief engineer Michael Case said the Toyota deal was great news for the industry and Australian drivers.