Ontario Toyota plants offered $545 million for upgrades
With help from almost $71 million from each of the governments of Canada and Ontario, Toyota's two Ontario plants are getting a $545 million expansion and upgrade.
With help from almost $71 million from each of the governments of Canada and Ontario, Toyota’s two Ontario plants are getting a $545 million expansion and upgrade.
Senior officials for Toyota Motor Manufacturing Canada Inc. and the federal and Ontario governments announced on July 5 that the company is planning to allocate a maximum of almost $365 million on a series of projects while the two governments will contribute up to $141 million in loans and grants.
According to Toyota, the lion’s share of the spending will likely go to improving a paint shop at Toyota’s 26-year-old Cambridge North plant, where it builds the Corolla, Matrix and Lexus RX 350 for North America. The Woodstock plant assembles the RAV4 crossover. Other funds will go towards making upgrades at both plants, including new machinery and equipment, employee training, and projects to increase efficiency and reduce waste.
Government officials said the projects would improve productivity, help retain – and possibly increase – production, and help protect the jobs of the approximately 6,500 employees at the two plants.
The news marks the first time the Canadian government has earmarked funding for the automotive industry since spending more than $12 billion to bail out Chrysler and GM during the recession in 2008 and 2009.