ON: Ontario, Toyota Partner, Retain 8,000 Jobs, Get $421M Toyota Investment
31 Jul, 2015
Ministry of Economic Development, Employment and Infrastructure Ontario is partnering with Toyota Motor Manufacturing Canada Inc. to invest in innovative new technology and secure the long-term future of the company's Cambridge and Woodstock assembly plants.
A new metal stamping line at the Woodstock plant will double capacity and increase productivity in a range of high-grade steels and lightweight alloys -- a first for the company in North America. The investment will not only reduce the need to import parts, but will also enable Toyota's Ontario operations to begin exporting to their U.S. plants.
Equipment and technology upgrades at the Cambridge plant will prepare the facility to produce the next generation of Lexus vehicles. For the first time outside of Japan, Toyota's specialized welding technology will be used.
Ontario will provide a conditional grant of up to $42.1 million, directly leveraging a $421 million investment from Toyota. The funding will help to create 25 new, highly skilled jobs and secure approximately 8,000 jobs in Toyota's Ontario manufacturing operations. This investment also supports thousands of direct and indirect jobs across Ontario's automotive supply chain.
Maintaining an innovative and sustainable auto sector is part of the government's economic plan for Ontario. The four-part plan includes investing in people's talents and skills, making the largest investment in public infrastructure in Ontario's history, creating a dynamic, innovative environment where business thrives, and building a secure retirement savings plan.
- This project is being supported under Ontario’s 10-year, $2.7 billion Jobs and Prosperity Fund that supports strategic investments that enhance productivity, bolster innovation and grow exports.
- Ontario’s business support grants are contingent on the company meeting stringent investment and job targets. Projects are closely monitored over their lifespan to protect taxpayers’ investment and include multiple clawback provisions if targets are not met.
- Ray Tanguay, former Chairman of Toyota's Canadian operations, is advising the governments of Canada and Ontario on strategies to maintain a strong auto sector in the face of intense global competition.
- In 2014, the automotive sector contributed almost 2.7 per cent, or just over $16 billion, to Ontario’s GDP.
- Ontario is the top vehicle producer in North America and is the only sub-national jurisdiction to have five major global automotive assemblers: Chrysler, Ford, General Motors, Honda and Toyota, as well as truck manufacturer Hino. The industry supports hundreds of thousands of jobs in communities across the province.
“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. These types of investments in Ontario’s auto sector are crucial in generating significant economic activity and ensuring we continue to compete for the next generation of vehicle production.”
Brad Duguid, minister of economic development, employment and infrastructure
“Today’s announcement is great news for the thousands of families across the region that depend on the auto industry for their livelihood. Toyota’s Cambridge and Woodstock plants are both major employers and drivers of our regional economy. I’m delighted that our government is at the table to help keep the sector competitive in the face of fierce global competition.”
Kathryn McGarry, MPP for Cambridge
“Over the past three years, we have invested more than $1 billion in capital expenditures at our Canadian manufacturing facilities. 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. The new technology we’re bringing here will ensure Toyota Motor Manufacturing Canada continues to lead the way.”
Brian Krinock, president, Toyota Motor Manufacturing Canada Inc.