Toyota hybrid car plant 'secure'

The Australian federal government says Toyota's contract to build a hybrid car factory in Melbourne is secure despite the company posting a record operating loss today.

The world's largest car maker announced a loss of A$2.5 billion ($3 billion) for the financial year, the first operating loss in more than 70 years.

Federal Innovation Minister Kim Carr says it will not effect the government's contract to develop a hybrid car factory in Australia.

The federal and Victorian governments provided a A$70-million grant to Toyota in June to secure the project.

"Of course it (contract) is guaranteed," Senator Carr told ABC Television.

"Contracts are written in such a way that the automotive companies do not receive public support unless they invest the money themselves."

- AAP