Canada’s Prime Minister Justin Trudeau has announced a $85.4 million investment to support Toyota Motor Manufacturing Canada’s $1 billion investment in its Cambridge and Woodstock plants. The investment will support more than 8,000 jobs in Southwestern Ontario, and will create 450 new jobs as well as 1,000 new co-op placements. Toyota will also invest $155 million in Canadian research and development over 10 years.¹
“Companies have confidence in Canada and Canadian workers, and know that we are ready to build the cars of the future,” said Prime Minister Trudeau. “Today’s investment will support thousands of jobs for Canadians, and keep our auto sector globally competitive and at the center of the growing demand for hybrid cars. We welcome Toyota’s decision to invest in our highly skilled workforce and expand its presence in Canada. This is a smart decision that further establishes our country as the place where cars of the future are built.”
Toyota’s investment will bring a new advanced manufacturing platform to the company’s plants in Ontario. Once complete, Canada will be the North American hub for the RAV4 and home to Toyota’s largest hybrid vehicle production in North America.
The vehicles to be manufactured at Toyota’s plants will be significantly more fuel efficient, and select process improvements within the manufacturing process will reduce volatile organic compound emissions in select shops by 10 percent. Toyota’s plants in Cambridge and Woodstock can produce more than half a million vehicles every year – making Toyota Motor Manufacturing Canada the largest automotive manufacturer in Canada.
“Ontario’s [$85.4 million] investment in Toyota is about making sure our province stays competitive during a time of rapid economic change, and building the kind of global partnerships that support long-term prosperity,” said Kathleen Wynne, Premier of Ontario. “This partnership will establish Cambridge and Woodstock as the North American manufacturing hub for Toyota’s RAV4, including hybrid versions. This is a vote of confidence in our highly-skilled, talented workforce, and our entire province.”
This project is funded under the Strategic Innovation Fund, a $1 billion program to support research, development, and commercialization of new products that pave the way for Canada as a global innovation leader and attract investments that create jobs. The Government of Canada launched the Strategic Innovation Fund in Budget 2017 to ensure Canada remains a top destination for businesses to invest, grow, and create jobs.
“Toyota Motor Manufacturing Canada has always had a strong partnership with the Canadian government,” said Fred Volf, President of Toyota Motor Manufacturing Canada. “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.”
This is the largest of several recent investments in the Canadian auto sector. In March 2017, with support from the federal and provincial governments, Ford Motor Company of Canada announced more than $780,000,000 in investments, including the establishment of a new connected vehicle research center, and the creation and maintenance of almost 800 jobs. In January 2017, also with support from the federal and provincial governments, Honda of Canada Manufacturing launched a project worth $382 million that will maintain Canadian jobs by supporting advanced and clean technologies. In June 2016, General Motors announced an increase in spending for research and development, which will increase its total number of software engineers in Canada to 1,000.
¹ All amounts are in U.S. dollars