Toyota will receive $100 million in financial aid from the Ontario and federal governments to increase production capacity and create new jobs in Southern Ontario.
The automaker will invest $321 million at its Cambridge assembly plant, 14% of which ($58 million) will be loaned by Ottawa, while another 10% ($42.1 million) will come in the form of a provincial subsidy.
The announcement was made at the Cambridge plant together with Gary Goodyear, minister of state responsible for the Federal Economic Development Agency for Southern Ontario, and Brad Duguid, the Ontario Economic Development Minister. It was supposed to come only next week, but people close to the matter revealed that the likely scenario of an early election start has forced the parties to move the announcement up a few days.
The investments will give the Woodstock plant a new metal stamping line that will double capacity and increase productivity where high-grade steels and lightweight alloys are concerned – a first for Toyota in North America. This will also reduce the need to import parts and even allow the plant to export parts south of the border.
Meanwhile, upgrades in Cambridge will help the plant build the next generation of Lexus vehicles. This will be the first time that Toyota’s specialized welding technology is used outside of Japan.
Toyota currently manufactures the Corolla and Lexus RX models in Cambridge, as well as the RAV4 in Woodstock.