Toyota Gets $34 Million from Canada For Plant Expansion
Ontario Plant Will Build Next-Generation Lexus RX Hybrid
In July 2012, we reported on Toyota's $100 million investment in its Cambridge, Ontario, assembly plant which builds the Lexus RX 350. Part of the investment was to move production of the hybrid version of the RX SUV from Japan to Canada, making it the first hybrid model to be built in Canada.
Today, we find out Toyota will be receiving as much as $34 million in funding from the Ontario provincial and Canadian federal governments to help its expansion plans in Canada, according to a report from Reuters. As we reported in July, Toyota is planning on hiring 400 additional workers, and expanding the plant's Lexus RX capacity by as much as 30,000 units, bringing its total potential output to 104,000 units, of which 15,000 are expected to be the RX Hybrid. The Cambridge plant is the only Toyota plant outside of Japan to manufacture Lexus-brand vehicles.
The federal funding comes from Canada's Automotive Innovation Fund, established in 2008 for research and development projects for the Canadian auto industry. The Canadian government voted earlier this month to extend the program for another five years with $250 million in funding.