Toyota is investing $1 billion into the plant in Canada that produces the company's top-selling RAV4.
Toyota Motor Corp. is planning to beef up its manufacturing footprint in Canada with a $1 billion investment its three assembly plants in Woodstock and Cambridge, Ontario, which are dedicated to building two of the Japanese automaker’s most popular vehicles in North America, the Toyota RAV4 and Lexus RX 350.
The investment will be used to retool the company’s Ontario operations to build vehicles using Toyota’s New Global Architecture, which will make dramatic improvements in the performance and competitiveness of the vehicle, as well as how it is engineered, Toyota officials said.
It will also support the pursuit of future production for Ontario as well as research and development, and new automation technology in the paint and plastics shop. The investment represents a reversal of fortune for Canada’s auto industry, which has lost ground production in Mexico has steadily expanded.
The project is scheduled for completion by late 2019 with job commitments lasting until 2028, Toyota said, and leave the plants capable of making both gas and hybrid models.
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The company is investing heavily in the plants that produce its top selling SUVs for Toyota and Lexus.
Toyota’s Woodstock/Cambridge complex is located off of Highway 401, the highway connecting Detroit and Toronto It is 150 miles east of Detroit and makes extensive use of suppliers in the MIdwest as well as southern Ontario.
“Toyota Motor Manufacturing Canada has always had a strong partnership with the Canadian government. With 30 years of manufacturing experience, our success is a result of TMMC Team Members, who are known for their dedication, high levels of skill, and challenge mindset. We’re aggressively adopting new technology and innovative processes to ensure our ongoing success,” said Fred Volf, TMMC president.
Canadian officials rushed to embrace the project. this new investment will boost the competitiveness of Toyota’s Cambridge and Woodstock operations, as well as support the long-term viability of automotive production in Ontario.
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Ontario will provide up to $110 million, matched by the federal government, to help establish Cambridge and Woodstock as Toyota’s North American manufacturing hub for the RAV4, including hybrid versions.
Toyota's Woodstock plant produces the company's top-selling RAV4.
The RAV4 is now Toyota’s top-selling vehicle in the United States, supplanting the Camry last year as part of the general surge in SUV sales overall. The RX 350 is also Lexus’ top seller.
Manufacturing the RAV4 is a complex, labor-intensive process that Toyota projects will support more than 8,000 existing jobs and add 450 new jobs. As a result of this investment, Toyota’s Ontario manufacturing operation will become the leading hybrid SUV producer within North America, said Ontario Premier Kathleen Wynne.
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Toyota is the largest vehicle producer in Ontario and a cornerstone of the province’s auto sector. This landmark investment — coming at a time of uncertainty in the North American auto industry — makes the Cambridge and Woodstock plants highly competitive among Toyota’s global operations, supporting the long-term viability of vehicle production in Ontario, she said.