8,000 jobs secure as Toyota invests $421 million in Cambridge plant
Taxpayers kick in $100M to help support technology innovation
Toyota Motor Manufacturing Canada will invest $421 million to launch the next generation Lexus RX 350 and 450h vehicles at its assembly plant in southwestern Ontario.
As previously reported, the federal and provincial governments are supporting the investment.
Ottawa will contribute a repayable loan of $59 million while the Ontario government is kicking in a grant of $42.1 million for a total of just over $100 million.
The money is for a range of new technologies that will help support production of the new RX 350 and 450h.
Several will be firsts for Toyota globally and others will be new to North America, the Canadian division of the Japanese automaker said.
The investment will help secure the 8,000 jobs at Toyota’s plants in Cambridge and Woodstock but does not address the larger question of what happens when production of the Corolla moves to a new plant in Mexico in 2019.
The union representing Canadian auto workers fears the loss of the bestselling compact car could mean a reduction in jobs.
Toyota has said Corolla production will be replaced with a mid-sized, higher value vehicle yet to be announced.
“The spending we are announcing today, along with recent investments in other aspects of our Canadian operations, demonstrates our ongoing commitment to this country, to our team members and to the community in which we do business,” Brian Krinock, president of Toyota Motor Manufacturing Canada, said in a statement.
Toyota has invested more than $1billion in its Canadian operations over the past three years, he noted.
“Canada’s automotive sector is a global leader in vehicle production and our government is proud to support projects that promote Canada as a destination for future automotive investment,” Gary Goodyear, federal minister of state and the MP for Cambridge, said in a statement.
Brad Duguid, Ontario’s Minister of Economic Development, Employment and Infrastructure, said: “Our government is proud of Toyota’s success in building vehicles in Ontario, with its industry-leading track record for quality and innovation.
“Our partnership allows Toyota to build on that success by securing their future in Ontario and leveraging new, innovative technologies to strengthen their exports and increase their competitiveness,” Duguid added
The new technologies include introducing updated laser screw welding procedures and increasing the content of lightweight, highstrength steel used in assembly. The announcement comes just days before an expected federal election call this weekend, and was reportedly moved ahead by a week at the behest of the federal government. It also comes amid growing concern about the future of the auto industry in Canada as North American production shifts to the lowercost jurisdictions in the southern U.S. and Mexico.
Industry observers say the fate of General Motors’ plant in Oshawa was thrown into doubt after the company announced production of the next generation Camaro would move to Lansing, Mich. The company has yet to say what will replace it.
The move will mean a loss of about 1,000 assembly plant jobs in Oshawa by the end of this year. Most of the cuts are being achieved through retirement incentives.