The Canadian government in Ottawa and the Ontario province government are contributing C$141.6m to a major C$545m capital investment to improve productivity at Toyota Motor Manufacturing Canada’s two plants in Ontario.
The federal and provincial governments said they would grant the automaker up to $70.8-m each in repayable contributions for its so-called Project Green Light at its plants in Cambridge and Woodstock, Ontario, the Financial Post reported.
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The funds are slated to be invested in productivity upgrades, including new machinery and equipment, employee training and continuing projects to increase efficiency and waste. They will also be used to upgrade Toyota’s paint shop in Cambridge but no new jobs will be created.
“This investment will help Toyota maintain its competitive edge in the global market,” John Milloy, Ontario’s minister of training, colleges and universities, said.
The Ontario government said the move would help secure roughly 6,500 jobs in the province at Toyota’s facilities.
“Continuous improvement is the backbone of Toyota and we will continue to look for ways to improve our products, our processes, and our people,” said Ray Tanguay, TMMC chairman, in a statement.
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By GlobalData“The strong support that we have received from both the federal and provincial governments is very important because it allows us to give these initiatives priority and helps to secure our production footprint in Canada. Government partnership also helps to ensure that the Canadian automotive industry remains competitive and strong,” he added.
The Cambridge factory assembles the Toyota Corolla compact sedan and the RX350 luxury crossover utility vehicle; it’s the only plant outside Japan allowed to build a Lexus model.
Woodstock builds the RAV4, a larger version for the North American market.
