Toyota eyes Woodstock for a new Canadian plant

[Jaybird]

Toyota pinpoints Canada for new plant

Eyes Ontario site for $600-million facility; final decision not yet made, sources say

By GREG KEENAN

Tuesday, April 5, 2005 Page B1

AUTO INDUSTRY REPORTER

Toyota Motor Corp. has zeroed in on a site near Woodstock, Ont., as the location for a new, $600-million assembly plant that would create about 1,500 jobs and could eventually lead to the auto maker doubling its production in Canada.

Landing the new plant would be a significant victory for Canada amid intense political pressure and huge financial incentives offered by several U.S. states and would help justify recent efforts by the Ontario and federal governments to try to win major new automotive investments.

The auto maker has chosen a spot of about 1,000 acres near Highway 401 and Highway 2 in Oxford County just east of Woodstock, 30 minutes away from its existing operations in Cambridge, Ont., industry sources said.

Toyota has not made a final decision, the sources cautioned, but they said the plant is Canada's to lose -- in part because Toyota officials in Japan regard Canadian workers highly and in part because new plants are already under construction or being expanded in the United States.

The company's Toyota Motor Manufacturing Canada Inc. plant in Cambridge employs about 4,300 people and is the only plant outside Japan to manufacture vehicles for the auto maker's luxury Lexus line, which is considered a high honour in the Toyota realm.

Toyota Motor Canada spokesman Greig Mordue would not confirm the information.

The auto maker's sales are growing in North America and the company's philosophy is to build vehicles where they are sold, he said.

Canada is a strong contender for new investment if such investments are planned, he added.

The Toyota factory, if it goes ahead, would be the first new assembly plant in Canada since 1995 and only the second since 1989.

The other new plant is a Honda Motor Co. Ltd. plant in Alliston, Ont.

The traditional Big Three auto makers -- the Chrysler unit of DaimlerChrysler AG, Ford Motor Co. and General Motors Corp. -- have invested billions of dollars in Canada during that same time frame, but have built no new assembly plants. Recent investment announcements of $2.5-billion by GM and $1-billion by Ford are to redevelop existing operations.

Sources familiar with the Toyota proposal said the new investment in Canada is aided by a plan to make it essentially a satellite operation of the Cambridge facility, which would reduce administrative costs. The Oxford County site is also served by a Canadian National Railway Co. line. It is also easily accessible to 400 series highways that lead to three separate border crossings, one in Sarnia, Ont., another at Fort Erie, Ont., and the clogged Windsor-Detroit crossing.

Toyota has been looking at expanding production capacity in North America for more than a year, even with a new pickup truck plant already under construction in San Antonio, Tex.

The talk of the new Canadian plant comes amid an attempt by the Canadian Auto Workers union to organize workers at the Cambridge operation.

The union has been aiming to hold a certification vote at the plant this month, but such a vote can only be held when a minimum of 40 per cent of the workers have signed union cards. A simple majority of 50 per cent plus one is required for certification.

Hemi Mitic, an assistant to CAW president Buzz Hargrove, said yesterday that the union has not yet requested a vote because it's not sure what the true numbers in the plant are after the company made about 140 contract workers full-time employees last week.

A previous attempt to organize workers in Cambridge failed when the union was unable to sign up the required 40 per cent of workers.

The only unionized Toyota assembly plant in North America is a joint venture facility with General Motors Corp. in California.

Toyota is on a roll in North America, with sales of 2.3 million cars, trucks, minivans and sport utility vehicles last year. The auto maker produced 1.444 million vehicles at plants in Canada, the United States and Mexico.

Expansion plans

Cambridge - Toyota's existing plant

Built: 1988

Expanded: 2003

Employees: 4,300

Investment: $2.8-billion

2004 production:

Corolla sedan - 141,445

Matrix utility vehicle - 81,064

RX330 luxury SUV - 65,350

Woodstock - proposed plant

About 1,000 acres just east of Woodstock

SOURCE: Toyota

[Jaybird]

^ I orginally thought Cambridge was getting it, but if Woodstock is, then that will be a HUGE BOOST for the Woodstock city economy and area!

[marathon]

Either one is just a cruise on 401 from the other...

[ssiguy2]

It would be better to see Woodstock to get it as it is not a growing city and could use the help. Cambridge will continue its brisk growth pace due to its proximity to Toronto.

[algonquin]

this is fantastic news.

[ldoto]

Toyota plant in Oxford imminent

NORMAN DE BONO, Free Press Business Reporter 2005-04-13 03:30:37

:eek2:
Toyota is weeks away from announcing a new automotive assembly plant for Oxford County and the London Economic Development Corp. is looking to land parts plants to feed the new plant, industry observers said yesterday. The plant, which will employ 1,500 to 2,000, will land in Blandford-Blenheim Township, near Woodstock, and assemble a small entry vehicle, they said.

"The prospects are very real. The industry is certain it will happen," said Buzz Hargrove, Canadian Auto Workers union president. "An announcement will be made within weeks. It has been in the works now for a long time. It should happen."

A Toyota spokesperson, Greig Mordue, wouldn't comment on specific investment plans, but said Canada's business environment meshes with Toyota's needs.

"(It's) consistent with what Toyota wants," said Mordue, assistant general manager of corporate planning for Toyota Motor Manufacturing Canada in Cambridge.

Analyst Dennis DesRosiers, speaking after an auto industry conference in London, said Toyota has to move quickly.

"I am hearing the same thing. From a timing point of view it has to get done soon," DesRosiers said of the announcement, believed to be coming in about four weeks.

Toyota wants more vehicles on the market by 2008 to take advantage of expected industry and economic growth and needs more assembly plants to build them, DesRosiers said.

"The market in 2008 will be bullish. We will have gone through the downturn and they want to be prepared for growth. To get capacity in 2008, they have to start this year."

As for what the plant will produce, "I keep hearing a vehicle," DesRosiers said. "It is more likely to be on the low end (smaller vehicle) than high . . . (That is) where the growth is. At least one additional plant is needed."

If Oxford County lands the plant, it will be "a huge benefit" to London, said John Kime, president and chief executive of the London Economic Development Corp.

"There will be jobs spread throughout the region. London will be an enormous beneficiary. We have already started the process of finding out who suppliers will be and contacting them."

Toyota has about 10 per cent of the global marketplace and wants about 15 per cent, DesRosiers said.

Toyota operates six plants in North America, including two assembly plants in Cambridge and new plants in Texas and Tijuana, Mexico.

Canada is due for a plant, he said, but there are obstacles.

DesRosiers pointed to delays in getting goods across the Canada-U.S. border and ongoing CAW union drives at Toyota plants.

"It will be a tremendous opportunity for London and your LEDC was smart to not go after the plant, but go after parts plants. The ripple effect will be even larger than the plant," DesRosiers aid.

But Hargrove believes there will be little spillover from the Toyota plant for the surrounding community.

Toyota tends to have few suppliers because parts are imported from Japan. A few parts plants may open here, he added.

Oxford County is moving quickly to buy more than 400 hectares of land in Blandford-Blenheim, just east of Woodstock and bounded by Highway 401, Oxford County roads 2 and 4 and Township Road 2. The county is also buying property from homeowners in the area.

Toyota's Cambridge plants employ more than 4,000.





Copyright © The London Free Press

[ldoto]

A U.S.-based agent representing a buyer for about 400 hectares of land Oxford County is assembling is in negotiations with the municipality, a county official said. Assembling the parcel, believed critical to landing a Toyota assembly plant, is going well and an announcement on the development should be made in four to six weeks, said Oxford Warden Don Woolcott.

"We have been putting the land together and talking to agents of a real estate development company," said Woolcott.

"We are still working on a few pieces, we're in negotiations with a few individuals and discussions are ongoing, but we are very close," he added. "If there was an announcement in four to six weeks, it would not surprise me, but some things still have to come together."

Woolcott declined to identify the agent, or the prospective buyer, but speculation is growing the site will see a $600-million Toyota vehicle assembly plant which will employ 1,500 to 2,000 workers.

"I believe we are supplying what they want and are working consistently toward that. If we can get it, it will be great news," he said of the Toyota plant.

The site in Blandford-Blenheim Township near Woodstock, north of Highway 401 and east of County Road 2, is largely unserviced farmland. Homeowners have been paid a $5,000 deposit for agreeing to sell their land, which they keep if the deal falls through.

One homeowner revealed the county agreed to pay her about $200,000 for her half-hectare parcel of land, which also has a three-bedroom home. Property owners have been told the deal may close this summer, with development slated to begin in the fall.

One of the large parcels still holding out is the 40-hectare golf course Woodstock Meadows. Owner Henry Vink is still negotiating with county officials, he said.

"We're doing well now, we've really hit our stride. We don't want to sell, but when you're dealing with government, there is a chance they will expropriate," said Vink, who has owned the course for 10 years.

"We would have to relocate, start up again. It takes three years to build and have a new golf course grow in. The biggest thing for me is relocating." He's not surprised an announcement may be four to six weeks away.

"They are moving quickly, they want this tied up fast," Vink added.

Tenants in Blandford Square Mall have been largely left out of the speculation, said Shelly Martin, owner of Jinxi Martin's Family Diner.

"There has been a lot of talk, but we are completely in the dark here," said Martin. "We have heard nothing. I don't think the mall is part of it at all."

The county has backed off recently from hard-sell tactics it had been using, said Doug Eakins, owner of Eakins Haulage.

"I haven't heard from them in about two weeks, things have really cooled off," said Eakins, who owns about 0.6 hectares of land beside the golf course.

"They were pushing pretty hard. They say they are willing to pay fair market value, but what is that? You have to consider moving and relocating the business."

Marie Pearson and her husband thought they'd built their dream home on a 1.6-hectare farm on Township Road 2 about seven years ago, but when an agent for the county knocked on her door last month, she agreed to sell.

"We agreed because they would have put us out if we didn't," she said. "It will be very hard to move."





Copyright © The London Free Press


__________________
Ldoto

[Jaybird]

Oxford angles for mall land

Blandford Square is part of a parcel the county is believed to be assembling for a new Toyota plant.
NORMAN DE BONO, Free Press Business Reporter 2005-04-19 02:22:42


Blandford Square Mall is on the list of land Oxford County wants to buy to pave the way for industrial development. The county is in talks to buy at least part of the 40-hectare site near Highway 401, owned by mall owner First Summit in Toronto.

"The talks are preliminary, there is not an offer on the table yet, but I think the county is very serious," said Joe Chetti, First Summit's owner. "(The county) basically told me they want to do the deal sooner rather than later. I am in favour of development. I am a developer and I love it when things are built."

The mall is part of a 400-hectare parcel being assembled for what many believe will be a new Toyota assembly plant in Blandford-Blenheim Township.

Chetti wants to sell about 24 hectares and keep the rest the mall sits on to redevelop as a commercial site.

The county would rezone the land for industrial use, leaving the mall "the only commercial component," said Chetti. "We can offer exposure to Highway 2, which no one else can. We have access points no one else does. It would be very convenient ."

Oxford Warden Don Woolcott could not be reached for comment yesterday.

The nearly vacant mall has three tenants -- a furniture store, a liquidation store and a restaurant.

"The mall needs a renovation, but it could become a major destination spot -- it is ideal," said Chetti.

The mall has offered land to its east, between its location and the 40-hectare Woodstock Meadows golf course, which the county is also negotiating to buy.

"The county has a lot of confidentiality agreements, but there is obviously a lot of activity out there right now and whatever is coming . . . will be good for the whole area," said Chetti.

The site in Blandford-Blenheim is bound by Oxford roads 2 and 4, Township Road 2 and Highway 401.

The area is largely unserviced farmland. Homeowners have been paid a $5,000 deposit for agreeing to sell their land, which they keep if the deal falls through.

A U.S.-based agent representing a buyer for the land the county is assembling is in negotiations with the municipality, a county official said.

An announcement on the development is expected in four to six weeks, one county official said.

The $600-million Toyota plant may assemble a small vehicle and employ 1,500 to 2,000 workers.

More than a dozen property owners have been approached and most have agreed to sell, with only "a few" still in talks, the county has said.

[Steeltown]

Dofasco could open new Hamilton operation if Toyota opens Ontario plant

Canadian Press

Friday, May 06, 2005

HAMILTON (CP) - Dofasco might open a new Hamilton galvanized steel facility catering to the automotive market if Toyota Motor Corp. opens a new assembly plant in Ontario, the steelmaker's chief executive said Friday.

Speaking to reporters after the company's annual general meeting, Dofasco CEO Don Pether said Dofasco has already been in discussions with Toyota about supplying the new plant if the project comes to fruition. Recent reports have said that Toyota has chosen a site near Woodstock, Ont., as the future location of a possible $600-million assembly plant that would create about 1,500 jobs.

The waves of that project could ripple to Hamilton, where a new Dofasco galvanizing line could be built for about $200 million.

Galvanizing lines turn steel into an advanced, rust-proof product that is used in automotive bodies.

Last April, Hamilton-based Dofasco and Luxembourg's Arcelor, one of the two largest steelmakers in the world, announced that they were in the final stages of choosing a site in the southern United States for a galvanizing line that would cater to that area's growing auto industry.

The announcement sparked numerous calls from governors hoping to lure the investment to their state, Pether has said.

Dofasco spent a lot of time and effort over eight months working on the project, before announcing that it would not proceed, Pether said Friday. The companies said they were unable to make the project economically attractive.

Dofasco already has a galvanizing line in Hamilton in partnership with Arcelor. That facility was a $200-million investment, Pether said. The company also has a similar facility in Windsor.

If Toyota's project goes ahead, and Dofasco's current galvanizing lines continue to be used to capacity, the company will certainly look at adding a new line in Hamilton, Pether said. Another possibility would be to upgrade its current line, he added.

About 45 per cent of Dofasco's business comes from the automotive market, Pether told a shareholder who was concerned about the fading prospects for Ford and General Motors on Friday.

Dofasco managed to increase its shipments to the auto sector during the first quarter of this year, Pether said at the annual meeting. Honda is one of its largest customers, and the steelmaker also supplies DaimlerChrysler and Toyota.

Dofasco would definitely see an increase in its business if Toyota's Ontario plant is built, Pether said.

He told reporters that agreements between steelmakers, like Arcelor and Dofasco, could be replacing the wave of consolidation that was expected to continue sweeping the steel industry.

A lot of the distressed assets have been bought, and as steel prices soared last year, so did the value of steelmakers. Future consolidation would see companies paying market price plus a premium, Pether said. But technological agreements and joint ventures are continuing to reshape the sector.

[Steeltown]

Woodstock Waits

Toyota's decision on building a plant in southern Ontario could be just weeks away, report says
By Steve Erwin
The Canadian Press
TORONTO (May 11, 2005)

A decision on whether Toyota will build a manufacturing plant in southern Ontario is just weeks away and the factory could be open by the spring of 2007, sources said yesterday.

A source told The Canadian Press that "agreements in principle" have been reached with Ottawa and the province on funding assistance for the proposed project in Woodstock, Ont., and could be presented at a Toyota Motor Corp. board meeting in Tokyo late next month.

"About the only thing holding it up is reaching some final agreements, probably with the feds more so than the province of Ontario, on training funds," said a source.

Speculation has been mounting for months that Toyota was interested in building a new complex worth up to $1 billion in Woodstock, not far from its massive assembly operations in Cambridge, where workers at two plants make the Corolla, Matrix and Lexus RX 330.

The Wall Street Journal reported yesterday that the proposal to construct Toyota's seventh North American assembly plant in Woodstock would be presented at the automaker's monthly board meeting in late June. The Journal also said top Toyota manufacturing executives still need to conduct a final site inspection.

If approved, it would take between 18 months and two years to build the plant, which could initially start up with 1,000 workers making 50,000 vehicles a year. Those figures could be boosted to 2,000 to 3,000 workers producing 150,000 units annually.

Spinoffs of assembly plants can create jobs that support them. Dofasco Inc. chief executive Don Pether said last week that the Hamilton steelmaker would consider building a new galvanizing line in the province if the Toyota plant is secured.

Gerry Fedchun, president of the Automotive Parts' Manufacturers Association, said spinoff jobs from a new assembly plant can be at least seven to one and as high as 10 to one.

"It would certainly be a significant number and bring a lot of prosperity to the area," Fedchun said.

Getting final government approvals for funds on training and other initiatives, which can significantly reduce the cost of the construction of a manufacturing plant, shouldn't take much longer, the source said.

The Liberal government in Ontario has been more willing than the previous Tory regime to assist automakers, who over the years have been enticed to build factories in U.S. jurisdictions that offered steep subsidies in exchange for the creation of thousands of jobs.

[vid]

Thunder Bay's eyeing Toyota for a new Canadian plant :P

But, if they choose Woodstock, we completely understand.

[Jaybird]

With the Woodstock and London regions getting a huge boost from this potential Toyota plant, Stratford would also benefit, because there are a lot of automotive plants in Stratford, it's second largest economy sector, behind festival/entertainment and tourism, which are about tied.

Now Hamilton could get another Dofasco plant built. The benefits that could become (if the plant is built in Woodstock) would spinoff to other cities like crazy. Just weeks away, I can hardly wait for that announcement!

[Oaronuviss]

How about it eyes another part of the world insted? Like a poor country that actualy likes Toyotas.

How about the big three eye Woodstock and make our economy more robust insted of giving a measely 600 people jobs whose hard effot and money go to Asia, where as the big three money would go back into my government's pocket.
I sound bitter, I'm sorry, but in the past 10 years I've seen people's cars trucks and vans turn from 98% domestic to 50. GROSS.
Yeah they're more efficient but screw it, we're all doomed, and they're not going to get rid of fossil fuels in the near future anyways. So what if your crappy Toyota or Honda gets up to max speeds of 12 km/h wastes 3 cents of fuel LESS than my big beefy (insert name here) which gets up to speeds of 2378462385 km/h and makes people's heads turn...

BOLLOCKS

[Steeltown]

Feds commit funds for proposed new Toyota plant in Woodstock, Ont.

HAMILTON (CP) - Ontario's hopes of landing a new Toyota assembly plant shifted into higher gear Thursday after Ottawa committed $55 million in funding to secure the proposed factory, according to a senior federal official.

The source said cabinet agreed Thursday to the funding package, which along with provincial dollars are seen as crucial in attempts to entice the expanding Japanese automaker to build its next factory in Woodstock, Ont.

The factory could employ more than 1,000 workers and industry estimates suggest spinoff jobs from an auto assembly plant could be as much as 10 to one.

"They're very excited about this one," the source said of Ottawa's interest in the Toyota project.

Toyota already has a massive assembly complex in Cambridge, Ont., but amid improving sales is looking to build its seventh North American plant.

The Woodstock proposal will be presented to Toyota's board late next month in Tokyo.

Word of the federal commitment followed an auto parts conference in Hamilton, where the head of Toyota's Canadian manufacturing operations wouldn't speculate on whether the Woodstock proposal will succeed. Ontario is competing for the plant against U.S. states including Alabama, Michigan and Missouri.

"We've done our best with the co-operations of all of the partners that we need to make that (Woodstock proposal) attractive," said Ray Tanguay, president of Toyota Manufacturing Canada Inc., at the Automotive Parts Manufacturers' Association conference in Hamilton.

"But at the end of the day, that decision is made in Japan and by our shareholders."

Public incentives are now commonly used throughout North America to attract factories, with governments trading millions of dollars in subsidies for factories that create jobs and boost tax revenues.

Provincial officials will not specify what they might contribute to the project, though sources have suggested federal support had been lagging behind Ontario commitments.

At the conference in Hamilton, Ontario Economic Development and Trade Minister Joe Cordiano said there's $165 million remaining in Ontario's five-year, $500-million auto investment fund. General Motors and Ford are among those who have been allocated funds from that plan, which helps cover research and training costs for projects that will create at least 300 jobs.

A new Toyota plant would easily employ at least triple that amount but Cordiano wouldn't discuss specifics of any proposals. The minister made a recent trip to Japan where he met with officials from Toyota, as well as Nissan, which has said it might build its first Canadian plant if its sales in the country improve.

"We are getting attention from around the world, and I can tell you there are expressions of interest - I won't go into details - but there are expressions of interests from other (automakers) in other countries," Cordiano said.

[samsonyuen]

The hybrid plant that Kentucky got, was Southern Ontario in the running for that too?

[oceanmdx]

I don't believe so.

[Jaybird]

Ontario angles for Toyota

JOE BELANGER, Free Press Reporter 2005-05-23 02:06:50



Ontario is "working very hard" to secure a proposed new Toyota assembly plant, says London West MPP and Ontario Labour Minister Chris Bentley.

But Bentley yesterday refused to disclose details of the province's efforts in the wake of the federal government's promise of $55 million to help secure the factory.

Bentley said Premier Dalton McGuinty and Economic Development and Trade Minister Joseph Cordiano "are working hard" on the issue.

Two weeks ago, Cordiano was part of a team of politicians and top auto industry players who visited Japan in hopes of promoting the province to Toyota officials.

"I think beyond that, it would be imprudent to speculate," Bentley said.

"But we're there at the table talking and . . . I've heard nothing negative from our end. So, we're all very, very hopeful. I think it would be imprudent to comment beyond that."

Elgin-Middlesex-London Liberal MPP Steve Peters said he would love to see the Toyota plant come to Oxford.

Besides investing in agriculture and education, the government has identified automotive as a key sector, he said.

"We recognize the value of making investments," Peters said.

Ontario's hopes of landing the new assembly plant were bolstered after it was learned the federal cabinet had approved a funding package.

Incentives from both senior governments are considered crucial to getting the Japanese automaker to build its next factory in Woodstock.

The factory, which sources say could open in the spring of 2007, would employ more than 1,000 workers and industry estimates suggest spinoff jobs from an auto assembly plant could be as much as 10 to one.

Toyota already has an assembly complex in Cambridge and is looking to build its seventh North American plant as sales increase.

The Woodstock proposal will be presented to Toyota's board late next month in Tokyo.

Bentley said it's unlikely the province will tip its hand until Toyota makes its decision.

But he pointed to his Liberal government's willingness to assist automakers, such as recent funding announcements for General Motors in Windsor and Ford in Oakville.

Ontario is competing against U.S. states, including Alabama, Michigan and Missouri.

Copyright © The London Free Press

[Jaybird]

Toyota plant deal at risk

The Blandford Square Mall owner holds out for more money and threatens court action.
NORMAN DE BONO, Free Press Business Reporter 2005-05-25 02:49:09


A move by Oxford County to seize a mall to make way for a Toyota plant would be fought in court, its owners say, which would threaten the county's chances of landing the automotive assembly plant.

Oxford County council has approved a motion to expropriate land in Blandford Blenheim Township if needed to pave the way for industrial development.

The Blandford Square Mall's owners and an adjacent golf course are the only holdouts among the group of property owners in the area.

Though negotiations are going well with the golf course, the mall and county remain far apart.

Mall owner Joe Chetti of First Summit in Toronto said yesterday if the county does not pay him the asking price, he will fight expropriation in court -- a move that will tie up the land deal indefinitely.

"Any move to delay the deal would make prospective clients very nervous. This could affect the deal," Oxford County Warden Don Woolcott said yesterday.

"He could drag it out if he wanted to."

Chetti is asking $16.5 million for the mall. The county initially offered $2 million but has since "slightly" increased that offer, Chetti added.

"They can approve expropriation if they like, but I will fight them. I don't want this to end up in court, but if it does, it does," Chetti said.

"The mortgagees (on the mall) have deep pockets. If they want to fight, they will fight," Chetti said.

The county is assembling a 400-hectare parcel of land in the township for industrial development. It is believed to be the leading site for a $600-million Toyota assembly plant that would employ 1,500 to 2,000 people.

"It does not make planning sense to have that mall there. We would like the whole property. It is key," Woolcott said.

"Having this put together would make any presentation so much more solid. We could say, 'Yes, we have this, it is available, there are no encumbrances on it.' "

Locating the plant in Oxford County is believed to be on the agenda at Toyota Motor Corp.'s board of directors meeting in Japan next month.

"It would be excellent to have this tied up before the board of directors meeting. We do not want an asterisk beside our name," Woolcott said.

The county would like the land deals completed by mid-June, he added.

"We need to demonstrate to a client we have the land, we cannot wait any longer. We have to move quickly."

The mall, north of Highway 401 at the intersection of Highway 2 and County Road 4, sits on about 40 hectares of land.

It contains a furniture store, restaurant, Liquidation World store, government office and dance studio. A vacant Wal-Mart store is under lease for another year and the retailer is paying for the space.

"It is ridiculous. I want to close this deal, too, just tell them to write a cheque," Chetti said.

"We are far apart at the moment. I hope we come to a conclusion. We have always been co-operative, we want to accommodate people, but I need to make the numbers work. I hope they come to their senses. I have a mortgage on this I have to pay."


Copyright © The London Free Press

[Steeltown]

You gotta be kidding me. A friggin mall is jeopardizing over a possibility of 600 jobs?

[algonquin]

that mall is an absolute piece of shit... I've seen it

[Jaybird]

I have too, and can you believe the owner of it is asking for ten times the exact value of it for the muncipality to purchase it. The owner of it must be really cash-strapped or something. It's absolutely ridiculous how much this guy is charging for it. He wants $16 million for it and the value is $2 million. This guy sounds like a bigger idiot than Mike Ilitch. Ever since Wal-Mart left, the mall has gone to shit, and all the stores that were there have moved to Highway 59 south of Woodstock near the 401. Come to think of it, it was an eyesore even when Wal-Mart was in there.

But they said it's unsolved and undetermined exactly how much the land value is of that property.

[Jaybird]

Oxford mall's value a puzzle

NORMAN DE BONO, Free Press Business Reporter 2005-05-26 02:57:36


The assessed market value of the Blandford Square Mall is one-tenth of what its owner is asking Oxford County to pay, municipal documents say.

The mall has become the final piece in the land assembly strategy needed to bring a Toyota assembly plant to the Woodstock area. Its owner is asking $16 million for the 40-hectare site, while the county has offered more than $2 million.

But Oxford County property tax information states the assessed market value of the site is $1.6 million. And mall owner Joe Chetti of First Summit Shopping Centres in Toronto, paid $1.35 million for the mall in 2002, documents at the county's tax office state.

"The vacancy rate there is high, the rents are low, they are not paying the mall's costs now," said Oxford Warden Don Woolcott. "The retail dynamic in the area has changed. The large, commercial nodes in Oxford County have moved elsewhere. The mall cannot survive."

But while the assessed value of the mall is $1.6 million, it may be worth much more if the land is to be used for an automotive assembly plant, said Chris Kerwin, broker with the real estate firm Colliers International in London.

"The last assessment does not take into consideration the possible change of use. The owner may have a good argument the value has changed," said Kerwin. "There has to be a full analysis of the new value or the affected value to more accurately reflect the mall's worth."

In Oxford, farmland sells for about $9,000 an acre, while industrial property goes for $60,000 an acre and serviced commercial land, such as the mall, can fetch up to $150,000 an acre, he added.

"It's a tough call, but these things affect the value of property," said Kerwin.

However, if the county begins expropriation proceedings, that automatically freezes the land value at its current use and not its possible future use. The fact it may be used for a Toyota assembly plant does not come into play, added Kerwin.

"If the municipality expropriates, the value of the land is determined by its as-is value, not the proposed use. That may be what the county is thinking," he said.

While Kerwin declined comment on the "as is" value of the mall, "the most recent sale price and the current assessment are pretty good indicators of value," he said.

Oxford County is assembling a 400-hectare parcel of land in Blandford Blenheim Township in an effort to woo a $600-million Toyota assembly plant, which may employ 1,500 to 2,000 people. The mall remains the lone stumbling block in the assembly.

If the county attempts to expropriate the land, Chetti said he will fight the move in court -- which will delay the assembly and threaten the area's chances of landing the assembly plant.

Other appraisers, who declined to be identified, said the mall may be worth anywhere from $3 million to $10 million, depending on its financial details.

Documents filed with the land registry office in Oxford revealed mortgages have been taken out against the property totalling more than $16 million. But those are most likely "blanket" mortgages, which include several properties and the mall is just one part of it, said Murray Farrell, a real estate appraiser in Woodstock.

The value of the mall is most likely more than the market value assessment, he added.

EXPROPRIATION

- Expropriation is a government's act of seizing property owned by a private party without that party's consent under the authority of a law, while paying compensation to the former owner. Any government has the right to seize such property, according to international law, if prompt and adequate compensation is given.

- The County of Oxford has passed a bylaw allowing it to use expropriation as a means of assembling land for a possible Toyota Motor Corp. plant.

Copyright © The London Free Press

[Jaybird]

Toyota site deal in doubt


A holdup due to problems acquiring a mall could complicate the automaker's plans.

NORMAN DE BONO, Free Press Business Reporter 2005-05-28 02:43:49


Toyota Motor Corp. will be looking for a "clean deal" when it hears Oxford County's pitch for an automotive assembly plant, industry watchers say.

But if the county offer is not free of question marks, it could hurt the pitch, they agree.

The county is locked in a struggle with the owner of the Blandford Square Mall, threatening to expropriate the 40-hectare site if First Summit Shopping Centres in Toronto does not sell to the county.

If the county tries to seize the mall, owner Joe Chetti has promised a legal battle that could tie up the land deal indefinitely.

"Toyota will want a clean deal," automotive analyst Dennis DesRosiers said in Toronto. "If anything holds up the announcement, it will interfere with their plans."

The property is the final piece the county needs in its land assembly strategy to locate a $600-million assembly plant in Blandford-Blenheim Township, which might employ 1,500 to 2,000 workers.

"The issue they have now is timing," DesRosiers added. "There is now a relatively narrow window for them to get this done, to meet Toyota's requirements."

Oxford County council approved resolutions to expropriate the land at a council meeting about two weeks ago. Chetti is demanding about $16 million for the mall, located at Highway 2 and County Road 4, just north of Highway 401. The county has offered just more than $2 million.

"If it interferes with their access to Highway 401, it is a point against them, but if they can work around it, they might be OK," said Gerald Fedchun, president of the Automotive Parts Manufacturers Association.

"There are a lot of unknowns with this right now, but it is always better to be clean," he said.

There may be options the county is not discussing now, such as searching for ways to work around the mall with a different design for the plant site. They could also make a conditional offer, overpaying if they get Toyota.

"They may have to think out of the box on this one," said Fedchun. "I would get my engineering people working on it very quickly."

Toyota favours that site because its proximity to highways 401 and 403 means it can ship goods into the U.S. for its other plants, he added.

"The most important thing for them is location for just-in-time delivery, and they need reliable, good access to highways 401 and 403, that's why that location is so good."

Chetti bought the land in 2002 for $1.35 million and its market value assessment is about $1.6 million, according to the county's tax department.

Toyota officials declined comment on the Oxford land squabble, except to say it is the nature of business to want risk reduced as much as possible when negotiating a deal.

"Whether you are talking about establishing a new car plant, or buying photocopiers, business organizations seek to mitigate risk," said Greg Mordue, assistant general manager corporate planning for Toyota's manufacturing operations in Canada.

"Business wants to eliminate risk and needs to make every effort necessary to do so."

It has been reported Toyota is expected to discuss building another North American plant at its meeting next month.

Retailers at the nearly vacant mall believe Chetti is not bluffing in his financial demands, or with threats to fight expropriation. "I think the county has met its match with Chetti, he won't back down," said Shelly Martin, owner of Jinxi Martin's Family Diner. "The county will have to give him his price."

, who believes she will lose her business and $70,000 investment if the county seizes the land.

"The county will have to give him his price."

Copyright © The London Free Press

[Jaybird]

If the Toyota plant doesn't come due to problems with the mall being sold, the owner of that Blandford Square Mall will undoubtedly become the most hated man in Oxford County and have a MURDER warrant out for him.

[oceanmdx]

I'll bet business is down at that Mall.

[rt_0891]

Someone should egg his house, lol. :D

[oceanmdx]

It would be funny if Woodstock withdrew its offer and nobody went to the mall so the ower ended up sorry that he didn't take their offer. Woodstock should look at Plan B and work around the mall property.

[RadioheadFan]

This guy...he sounds like a slimeball. Delaying a move that could change the future of Woodstock, and the area in general, he should be shot. I say that everybody who lives in Woodstock should...egg the mall AND his house.

[oceanmdx]

He has his rights too. It would be better if everyone just stopped going to his Mall and businesses in it stopped paying their rent.

[Steeltown]

Toyota to build new plant in Ontario: report
CBC News

TORONTO – Toyota Motor Corp. has chosen to build a second vehicle assembly plant in southwestern Ontario, according to a report published Monday.

The Toyko newspaper Nihon Keizai Shimbun said Toyota will build its new plant near Woodstock, 40 km east of London. Several U.S. locations were said to have been in the running to land the plant.

The move is expected to create 1,000 jobs at the facility, along with thousands of spinoff jobs at suppliers. The company is reported to be aiming to begin car production at the plant in 2008.

Toyota's board is expected to officially decide next month where to build its new North American auto plant.

The vehicle maker already has a manufacturing plant in Cambridge, Ont. Opened in 1989, the Cambridge plant employed more than 4,300 people as of the end of December 2004, and produces the Corolla, Matrix and Lexus RX-330.

The new plant, slated to be up and running by 2008, is expected to cost about $600 million to build and have an annual production capacity of 150,000 sub-compact cars.

[Jaybird]

^ hope all of that is true, and I will assume it is, to be coming from CBC News, and that the Toyota headquarters has actually indicated it.

[worldwide]

good news for woodstock, mabey next time i go it will look alot different

[Jaybird]

Mall may be expropriated

Oxford County might seize the property for a proposed Toyota auto assembly plant.

NORMAN DE BONO, Free Press Business Reporter 2005-06-09 02:26:14


Oxford County council's patience is growing thin with the owner of the Blandford Square Mall -- and expropriation is looming, Warden Don Woolcott warned yesterday.

Council will make a last- ditch effort to negotiate a settlement with mall owner First Summit Shopping Centres in Toronto but cannot delay seizing the land much longer, he said after a council meeting yesterday.

"We are continuing to explore options for an agreement; we are being very patient, trying to give him the opportunity to respond, but there is a limit to time and patience," said Woolcott.

The 40-hectare mall site is the last piece of land blocking a 400-hectare Oxford land assembly strategy.

Toyota is reportedly looking at building a $600-million auto assembly plant on the site to employ about 1,500.

The mall owner is demanding more than $16 million for the nearly-empty site, assessed at $1.65 million. The county has offered more than $2 million for the mall and some reports suggest it may have bid as high as $3 million.

Joe Chetti, owner of First Summit, has said he paid more than $14 million for the property in 2003. But land registry documents show it sold in 2002 for $1.35 million.

"I have no idea how Mr. Chetti arrived at those figures. The municipal tax documents do not support that," said Woolcott.

If Chetti fights expropriation, it could drag on as long as six months, said Woolcott.

"If we are in the position to speak to prospective buyers, that is the information we will give them. Then it becomes the question of whether they are willing to accept it," he said.

Woolcott declined comment on whether the land fight could cost the region the plant, but said the municipality will not overspend to get it done.

"The cleaner we can make any deal, the better. It is like selling fresh fruit," he said. "But as a municipal government, we have a responsibility to ratepayers to invest and develop wisely, and we must do so fairly," he said.

Woodstock Mayor Michael Harding suggested the battle for expropriation is one the mall owner cannot win.

"Expropriation is a relatively simple issue; we will get it," Harding said. "We have been getting ready for this. We have spent 16 months on this project."

Reports have suggested Toyota will make its plant-location announcement June 30, following a Toyota board of governors meeting.

If the county decided to expropriate a property, it has to file an official notice with all affected groups, prompting a hearing. During the hearing, the value of the land is frozen to reflect its existing use, negating any added assessment from future uses.

Both the county and the property owner would be able to present their cases to a provincially appointed officer.

The plant is expected to produce more than 150,000 vehicles a year. If a decision to build there is made at month end, construction is expected to be completed by 2008.

Copyright © The London Free Press

[Steeltown]

Seize the damn property. The guy is only trying to rip Woodstock off.

I would just give him a cheque of $1.35 million and then bulldoze the place.

[oceanmdx]

It turned out that this property isn't critical for the Toyota plant to go forward.

[ldoto]

:runaway: The new Woodstock plant is expected to benefit the whole area with spinoff activity.

HANK DANISZEWSKI, Free Press Business Reporter 2005-06-25 02:51:05







Oxford County may have landed the new Toyota plant but London could reap many of the rewards, says the general manager of the London Chamber of Commerce.

Gerry Macartney said the announcement of the Toyota plant scheduled for next Thursday is just the latest good news for the region, after expansion at Ingersoll's Cami Automotive plant and a strong upturn at heavy truck plants in St. Thomas and Chatham.

"This puts us in the eye of the storm, the centre of the vortex of all this economic activity," said Macartney.

The Woodstock Toyota plant is expected to employ about 1,500 people, drawing commuting workers from all over the region, said Ray Gormley, an economist with Human Resources and Skills Development Canada.

The Woodstock plant will be a sister operation to Toyota's Cambridge plant and is expected to assemble RAV4 and Scion sports utility vehicles.

Gormley said Toyota's Cambridge plant became the anchor for a new industrial area and the Woodstock plant, at Highway 401 and Oxford County Road 2, near the junction of Highway 403, could have a similar effect.

"These large plants can become a magnet, attracting other industries," he said.

Woodstock's new industrial park, adjacent to the Toyota site, has already landed two manufacturing plants with two more expected soon.

Macartney said London also stands to benefit from spinoff activity in the form of new auto parts plants.

"When someone lands a monster fish like this, there are always folks on the periphery hauling in their limit of smaller fish," he said.

Both Gormley and Macartney said the good news for the area contrasts strongly to the situation in the United States, which has been hit with plant closures and layoffs affecting the Big 3 auto makers.

Gormley said southern Ontario plants were forced to restructure during the 1991 recession and are in better shape than some of the "rust belt" American states that have seen a big slump in industrial activity.





Copyright © The London Free Press

[Bond James Bond]

Does anyone know exactly where this plant will be?
http://www.globalairphotos.com/gallery/ON/Woodstock/
^
:?

[oceanmdx]

Does anyone know exactly where this plant will be?
http://www.globalairphotos.com/gallery/ON/Woodstock/
^
:?

I don't know the exact location, but we can deduce where it will most likely be located.

Your link apparently shows the Blandford Square Mall which is on a 100-acre parcel of land - according to the previous news reports. Also according to those news reports, Toyota needs a 1,000 acre parcel of land, and that the Mall is a desirable but not a crucial part of it.

You can see the CN railway running parallel to highway 2 which is connected to highway 401 by the cloverleaf (in the third photo). Concession Road 4, connects to highway 2 by the Mall. CP also has a line just about 3 km north of the Mall.

It would appear that the Toyota plant would have to be to the north of highway 2 (just north of the Mall) on the west side of highway 401 and to the east of concession road 4.

If the plant where to locate on the east side of highway 401 and north of highway 2, I can't understand why anyone would care about the Mall in the first place.

[oceanmdx]

This also supports the location that I have suggested above:

http://www.woodstocksentinelreview.com/story.php?id=168813

The Woodstock Sentinel-Review —

A Toyota assembly plant is coming to Oxford, Canadian Auto Workers president Buzz Hargrove confirmed yesterday.
But the owner of the last piece of land being sought to make that happen swore to fight expropriation of his property to the death.
“If you expropriate for a third party, I’ll fight it until I’m six feet under,” an emotional Joe Chetti, who heads mall owner First Summit Shopping Centres in Toronto, said yesterday.
For his part, Oxford Warden Don Woolcott said the mall property is a “valuable piece of land and we will continue to pursue it either through negotiation or expropriation if necessary.”
It is “extremely desirable” that the entire 400 hectares (1,000 acres) in the assembly area northeast of Oxford roads 2 and 4 be secured for a single industrial tenant looking at the property. Woolcott didn’t name the tenant, although he did say “they’re not mall operators” when asked if the mall would be demolished as part of the assembly plan.
However, Hargrove did name Toyota and learned of the deal to bring the plant to Oxford from “people in the industry” close to negotiations. The CAW has been involved in unionization attempts at Toyota’s Cambridge plant.
“This is huge for the industry. It is very important. We have been fighting for investment in this industry and it is very welcome news,” Hargrove said.
A Globe and Mail report yesterday indicated Toyota is set to announce next Thursday that it will build a $600-million plant that could eventually employ 1,500 people.
Previous reports from Japan’s Nihon Keizai Shimbun business daily, the Toronto Star and the Los Angeles Times identified the assembly area site as the future home of Toyota’s second Canadian assembly plant. Those reports suggested the formal announcement on the plant might be made next Thursday.
Several sources have suggested to the Sentinel-Review that
an announcement is expected that day.
And a New York based correspondent for a Japanese newspaper following Oxford’s Toyota saga said officials with the company will announce plans to build the assembly plant during a press conference just outside of the city Thursday. That information came from a Toyota official who spoke on condition of anonymity.
The land assembly opening the door for Toyota is one property shy of completion and Woolcott said “we’re going to work toward it,” adding the county doesn’t have a target date for completion. The mall property will provide important access to the rest of the assembly area, Woolcott added.
On that access point, Chetti and Woolcott see eye-to-eye. Beyond that, though, there’s not a lot they seem to agree on.
Chetti, who is seeking $16.5 million for the 36-hectare (90-acre) mall property, said the county has done zero negotiating with him since failed talks with the county’s assembly agent on June 10. The agent stuck to the county’s latest bid of $4.5 million in that meeting.
Chetti suggested his asking price is a bargain, saying the commercial portion of his property is worth $8 million while the mall building itself could fetch a $10 million bounty.
“There’s no way they’ll take the land for the price they’re talking about,” he said. “Their numbers don’t jive. I know I can get a hell of a lot more money for it.”
Another bid for the mall property for $14.7 million from Toronto-based Retrocom Growth Fund Inc. remains on the table, Chetti said. He has said he’s holding off on that offer because he would rather deal with the county and its assembly plan.
However, he said he could sell to Retrocom or fill the mall with retail tenants, ballooning its worth.
The mall’s tenants have taken financial hits from the perception that they’re anti-Toyota, which Chetti said isn’t true.
“We don’t want to stop the progress. We never have, we never will,” Chetti said following the failed meeting.
Yesterday, he raged that “everyone is saying, ‘why don’t you sell?’ Why are they afraid of talking about the truth?”
Part of that truth, in Chetti’s words, is “this talk of expropriation is just a scare tactic.” He said he has a solid case against expropriation because it’s being used not for something like a municipal hall but, rather, for a third party.
And “the resources (to fight expropriation) will never end,” he said, adding he is backed by mortgagees with “unlimited” cash.
“(The county is) going to have to justify why they dragged me down. In court, it doesn’t work that way. At the end of the day ... they will pay for all my expenses. I’ll get my money back,” Chetti said.
An offer Chetti offered the county during the meeting that soured still stands.
Just over half of the mall property is zoned agricultural and the remainder is commercial. Chetti said he offered to give the county the agricultural land for free while allowing any needed access or right-of-way through the mall property to allow for the development of the assembly area.
Chetti said he doesn’t think the county needs all of the mall property to complete the assembly.
“They could build around us and let us stay,” he said.
The Globe story also said the provincial government will kick in $70 million in financial help for the Toyota project, adding to the $55 million in federal funds previously reported.
Jane Almeida, communications assistant with the premier’s office, said she couldn’t confirm the provincial cash.
Greig Mordue, assistant general manager of corporate planning for Toyota Motor Manufacturing Canada in Cambridge, could not be reached for comment.

[oceanmdx]

I like how people are avoiding the Mall. I sure wouldn't want to be a tenant in that Mall. If all the tenants left, then he would have to sell - at a lower price.

The answer to this problem is that both parties should agree to get several appraisals by real estate experts, and that would determine the selling price. RIM is buying a building from the University of Waterloo, and that is exactly what they are doing, so it's fair to both parties.

[Bond James Bond]

So, I guess this thing is the mall? Then it would go in the big field next to it, I suppose.

http://www.globalairphotos.com/images/on/woodstock/2002/woh2002_011.jpg

We can imagine that tons of new sprawl will be built around it once it's finished. :D

[oceanmdx]

Yes, I believe the plant will be in the field behind the mall (see the small pond).

[ldoto]

Today's announcement of a new Woodstock facility shows the region can still attract plants.


At a Woodstock high school this morning, the face of industry in Southwestern Ontario changes forever -- and not a moment too soon, experts say.

Today at Huron Park secondary school, Toyota will announce plans for a $600-million assembly plant, promising up to 1,500 jobs paying more than $30 an hour.

The news comes as the automotive industry, both parts suppliers and assembly operations, in part of the province has become a fragmented business -- a few prospering while many others suffer through declining sales, layoffs and shutdowns to save money.

"This is very important news because there is a lot of concern right now about the automotive industry in general," Jay Myers, economist with the Canadian Manufacturers and Exporters, said of the Toyota announcement.

"This is a big shot in the arm for a lot of companies right now, for the suppliers, for the whole sector. Having Toyota announce this is a sign Ontario is still an attractive place to manufacture."

Spinoffs from Toyota will see up to 9,000 other jobs created -- and about 3,000 of those will be in the higher-paying manufacturing sector that spreads from Kitchener to London, says Scotiabank automotive analyst Carlos Gomes.

More importantly, Toyota's decision may be seen as a win over other regions that have been siphoning production and jobs from Ontario with cheap labour and lower taxes.

"There are a lot of challenges out there in the automotive sector. There is greater competition from places such as China. There are big market challenges," said Myers.

"This can't help but boost business. It means there will be new opportunities for suppliers, new business," Myers said.

The automotive industry in Ontario employed 156,000 in 2000. But as of March, it provided work for just 148,000 -- 8,000 fewer than at its peak, said Gomes.

Still, auto sector employment dropped as low as 142,000 in 2001, so it has been worse, he added.

"You have to bear in mind that all the new plant announcements in recent years have all gone to the southern U.S.. This is the first new Canadian plant in some time. It is definitely a big win."

For every one dollar spent in manufacturing, $3.22 in overall economic activity is created, said Myers.

"Manufacturing still generates the most bang for the buck of any investment in any sector."

The new Toyota plant will be a sister operation to the two assembly plants Toyota now operates in Cambridge, making the Corolla, Lexus sport utility vehicle and Matrix. It is believed the new plant will assemble a new small vehicle called the Scion, as well as the Rav4, Toyota's entry-level SUV.

"You have to realize the whole industry has gone through some tough times in the last few years. There have been a lot of plant closings," said Gomes.

General Motors recently announced a plan to overhaul its workforce, with 25,000 job cuts at its U.S. operations, but few doubt Canada will be spared from layoffs. GM plants in St. Catharines and Windsor could be scaled back and have suffered some layoffs. However, GM's Oshawa operations continue to be an industry leader in quality and sales.

In St. Thomas, the Ford assembly plant will be shut down about one week a month for the balance of the year, and Ford plants in Windsor have also suffered job losses while the Oakville truck plant closed about two years ago.

"We've been in crisis mode the last three years. We've lost significant jobs and there is a real mood of uncertainty. Everyone is feeling the pinch," Ken Lewenza, president of DaimlerChrysler Local 444 in Windsor, said recently.

About half of CAW members in Ontario share work, meaning there are rotating weeks of layoffs at plants, he added.

DaimlerChrysler, which closed a van plant in Windsor last year, now has a booming Brampton factory pumping out hot-selling Chrysler 300 and Dodge Magnum vehicles.

The Cami Automotive plant in Ingersoll is also booming, with production slated for three vehicles, including two new ones. Employment is expected to top 3,000 next year.

And nearby, will be the new Toyota plant.

"It will mean more jobs and more business and that is very good," said Myers. "There has been a big question mark around all of the North American facilities."





Copyright © The London Free Press

[oceanmdx]

Toyota target: 100,000 vehicles/year
Canada ‘a good place to do business,’ automaker’s president says in videotape message

WOODSTOCK, Ont. — Ontario workers are well-trained.
That simple explanation was cited as a main reason why Toyota turned its back on hundreds of millions of dollars in subsidies offered from several American states in favour of building a second Ontario plant.
Industry experts say Ontarians are easier and cheaper to train — helping make it more cost-efficient to train workers when the new Woodstock plant opens in 2008, 40 kilometres away from its skilled workforce in Cambridge.
“The level of the workforce in general is so high that the training program you need for people, even for people who have not worked in a Toyota plant before, is minimal compared to what you have to go through in the southeastern United States,” said Gerry Fedchun, president of the Automotive Parts Manufacturers’ Association, whose members will see increased business with the new plant.
Acknowledging it was the “worst-kept secret” throughout Ontario’s automotive industry, Toyota confirmed months of speculation today by announcing plans to build a 1,300-worker factory in the southwestern Ontario city.
“Welcome to Woodstock — that’s something I’ve been waiting a long time to say,” Ray Tanguay, president of Toyota Motor Manufacturing Canada, told hundreds gathered at a high school gymnasium.
The plant will produce the RAV-4, dubbed by some as a “mini sport-utility vehicle” that Toyota currently makes only in Japan. It plans to build 100,000 vehicles annually.
The factory will cost $800 million to build, with the federal and provincial governments kicking in $125 million of that to help cover research, training and infrastructure costs.
Several U.S. states were reportedly prepared to offer more than double that amount of subsidy. But Fedchun said much of that extra money would have been eaten away by higher training costs than are necessary for the Woodstock project.
He said Nissan and Honda have encountered difficulties getting new plants up to full production in recent years in Mississippi and Alabama due to an untrained — and often illiterate — workforce. In Alabama, trainers had to use “pictorials” to teach some illiterate workers how to use high-tech plant equipment.
“The educational level and the skill level of the people down there is so much lower than it is in Ontario,” Fedchun said.
In addition to lower training costs, Canadian workers are also $4 to $5 cheaper to employ partly thanks to the taxpayer-funded health-care system in Canada, said federal Industry Minister David Emmerson.
“Most people don’t think of our health-care system as being a competitive advantage,” he said.
Tanguay said Toyota’s decision on where to build its seventh North American plant was “not only about money.”
“It’s about being in the right place,” he said, noting the company can rely on the expertise of experienced Cambridge workers to help get Woodstock up and running.
Premier Dalton McGuinty said the money the province and Ottawa are pledging for the project is well-spent. His government has committed $400 million, including the latest Toyota package, to the province’s auto sector, which helped finance $5-billion worth of industry projects.
“I think that’s a great investment that will more than pay for itself in terms of new jobs and new economic returns,” McGuinty said.
The provincial funds for the auto sector were drawn from a fund set up to attract investments specifically in that industry. McGuinty said no similar industry funds are being planned for other sectors, but added the province wants to attract biotechnology companies — those working on multibillion-dollar advanced medical research.
“What we have done for auto we would like to be able to do for biotech,” he said. “That’s where we’re lending some real focus to at the present time.”
Similarly, Emmerson said Ottawa is looking to help out industries that create “clusters” of jobs around them — such as in aerospace, shipbuilding, telecommunications and forestry — where supply bases build around a large manufacturer.

[oceanmdx]

It's like Toyota said no thanks to hundreds of millions of dollars offered by the US because their workers are too stupid to operate the equipment. Laughing my ass off!!!

[Steeltown]

LOL wow they have to use pictorials

[oceanmdx]

Maybe they have to go through a coloring book before they can understand the pictorials. LOL... gotta love those 'mericans. ;)

My nephew works at Toyota in Cambridge and makes very good money - and he's only a production worker. I think he makes around $35/hr - non-union.

[Steeltown]

Yea I hear working at Toyota is a tough job but you get paid well.

[oceanmdx]

Yea I hear working at Toyota is a tough job but you get paid well.

Exactly, I remember my nephew complaining about how hard they work him - but he's still there after many years. Toyota freely admits that they work people very hard.

[oceanmdx]

Winning the Toyota deal
THE AUTO CONTEST A small city, the province and the federal government took on the Terminator, and triumphed. Here's how.


TONY VAN ALPHEN
BUSINESS REPORTER

Joe Cordiano called it his "hurry up offence."

Ontario's Minister of Economic Development and Trade needed it badly on a frigid January morning in his pursuit of the biggest economic prize for any country: an auto assembly plant.

Toyota Motor Corp. officials had phoned and asked if the Ontario government could put together a land package of 1,000 acres for a plant. In just two months.

Cordiano still hadn't shaken off the thought of some U.S. state with bulging bags of money rumbling over Team Canada and snatching the plant he coveted. Among them was California Governor Arnold Schwarzenegger, the former Hollywood action hero and muscle man.

But Team Canada, which included Cordiano, Prime Minister Paul Martin, federal Industry Minister David Emerson, Woodstock area municipal officials and a small group of civil servants, employed a combination of Canadian politeness, perseverance and the benefit of an all-star plant in Cambridge to beat Schwarzenegger and at least four other American contenders.

"The first reaction from our people was that it was going to be difficult for us to put together that land in that time frame because we had never done it that quick," Cordiano said yesterday on his way to a hayfield in Woodstock. "I told them we had to get into our hurry up offence."

Cordiano formed a lot of hurry up offences after setting his sites on an auto assembly plant in early 2004. Ontario had fallen back in the auto plant game over the last decade. Billions of dollars in plant investments — and their job making magic — had landed in the U.S. south thanks to states that would do anything for them.

Free land? How much do you want? Water and sewer services? No problem. Tax Breaks? Right here. Cash? You got it.

The senior levels of government, labour leaders and academic researchers regrouped and devised a strategy, including incentive packages, to get Canada in the game again.

Cordiano made his first contact with Ray Tanguay, president of Toyota Motor Manufacturing Canada, in February 2004. His message: If Toyota is expanding again in North America, talk to us.

Tanguay had made the Cambridge plant a jewel in Toyota's worldwide network, with top product quality and productivity. He had become influential at headquarters in Japan.

Cordiano soon realized that Toyota would be expanding. A few weeks later, he was in New York meeting with Toyota's North American officials.

In March, Cordiano was in Japan. More meetings followed and it became clear that Canada might have a shot.

Federal and provincial government officials realized they had to demonstrate that Ontario wanted a plant and a partnership.

"They wanted a partnership with the government," Cordiano said. "They wanted to feel at home and wanted to be an integral part of the community. It's so important to them."

Meanwhile, teams from Michigan, Arkansas, Mississippi, Georgia and California were busy courting Toyota for its seventh plant in North America.

The cigar chomping Schwarzenegger landed in Tokyo in November 2004, where he got media star treatment. People regarded him more as a movie star and body builder than a politician. He proposed a California plant to build the environmentally friendly Prius. But the sizzle didn't really sell with Toyota's hierarchy.

In January 2005, Martin took a side trip on a Tokyo trade mission to meet with Fujio Cho, then president of Toyota Motor Corp.

The Prime Minister drove home the point that Canada would do everything it could to accommodate the auto giant.

It was a defining moment. Toyota officials thought a lot of a prime minister of a country who took the time to talk to them.

Within a day, Cordiano got a call in his office about the need for a site. He knew that some U.S. states had ready-to-build sites with all the trimmings.

Cordiano now realized Ontario was in the game. It was time for the hurry-up offence. Toyota wanted land in the region surrounding Cambridge. Three possibilities quickly emerged and municipal officials in Oxford County went to work under warden Donald Woolcott and Woodstock Mayor Michael Harding.

"We had to make sure the land was ready," Cordiano said. "It was critical. They wanted the shovels in the ground in August."

It didn't take them long. They hired an outside real estate agency that bought properties totalling almost 1,000 acres from more than two dozen owners in a block just east of Woodstock over about two weeks.

The site, including a golf course, farms, homes, bush and a gravel pit, was perfect. It was near major highways, railways and parts companies already supplying the Cambridge plant.

Meanwhile, Cordiano, who eventually visited Toyota in New York again, and federal Industry Minister David Emerson were busy working on aid packages for the company. The financial assistance was not a priority for the auto giant, but Canada had to offer something to compete with the U.S. state packages.

The U.S. packages remained a concern for Cordiano. One state was offering a package totalling about $300 million (U.S.), which would finance almost half of the plant's cost.

"I had a lot of sleepless nights," he said about the lingering U.S. competition.

In April, Cordiano returned to Japan on a trade mission, where he met with Toyota's officials again. Cordiano made Ontario's case one more time. Among other things, he emphasized that Canada's public health care costs are low and stable and its workforce is skilled.

Furthermore, statistics showed Canadian workers stay with their employers an average of 8.5 years in comparison to 5.5 years in the U.S. That fact alone made a significant impact on Toyota officials.

Tanguay was privately promoting Canada by using his own plant's record of superior quality and productivity. Toyota Corp. thought so highly of the plant that it awarded it production of a Lexus model a few years ago. It is the only plant outside of Japan to build a Toyota luxury model.

On the same trip, Cordiano saw Tanguay in the Canadian pavilion at Expo 2005. Tanguay informed him that Toyota had dropped plans at two U.S. sites and was focusing on Woodstock.

"Everybody was thinking now how do we make this happen in Woodstock," Tanguay said. "That was the message I gave him."

Cordiano then knew Canada was the frontrunner. With more hurry-up offences, the Ontario government put together a package worth $70 million for training, infrastructure and innovation. Emerson's federal department contributed $55 million.

On June 16, Toyota's board of management decided on building the plant in Woodstock. Yesterday, Toyota's board gave final approval in Tokyo.

[ldoto]

As many as 9,000 spinoff jobs are expected from the huge undertaking, backed by $125 million in government money.



Toyota isn't bringing just one auto assembly plant to Woodstock -- it's bringing an entire "family of companies," says Oxford County Warden Don Woolcott.

Toyota Motor Manufacturing Canada made the plans official yesterday, announcing an $800-million new assembly operation, which will employ 1,300 workers and assemble 100,000 RAV4 sport utility vehicles.

But that's the tip of what should become a massive job and industrial growth iceberg for the city, as the 400-hectare (1,000-acre) site will be an industrial park for parts suppliers that will locate beside the plant.

"This site will be totally transferred to Toyota and we have said all along we want a family of companies there and Toyota has said back to us, 'That is in our plans, we will look to a family of companies,' " Woolcott said.

"I am not sure when they will roll out step two, it depends on the success of this plant, how well it goes. We have to prove ourselves first. Cambridge proved itself and got this expansion. We have to do the same."

Oxford County assembled the parcel of land and Ottawa has committed $55 million in support to be used for "pre-production and environmental technologies" in the plant and paint shop. The provincial government is committing $70 million for training and infrastructure.

The RAV4 is now made in two factories in Japan. Production at Woodstock will begin in 2008. Plant construction begins in September.

Toyota Canada president Ray Tanguay played down any discussion of plans to build more than the assembly plant on the site.

"We will always encourage suppliers to move closer to the assembly plant, but at this point, we do not know what that really means," he said.

News of a broader industrial development for Woodstock came as no surprise to automotive analyst Dennis DesRosiers. He says it's a trend in the industry.

"The automotive sector is moving toward the concept where major suppliers move as close as possible and even on campus. They are establishing automotive campuses where they want to be tightly knit and integrated," DesRosiers said.

London is poised to benefit from that strategy, as other suppliers will certainly be from the London area The London Economic Development Corp. is now working in Japan to bring Toyota suppliers to this city, DesRosiers said.

LEDC spokesperson Patricia Hoffer agreed. She said yesterday the agency has changed focus from European parts plants to Asian suppliers.

"Asia was always in our sights. We have had success in Europe, but we always planned to look at Asia long-term. This announcement reinforces that strategy makes sense for London," Hoffer said.

Economic spinoff calculators suggest up to seven jobs will be created for every one at the plant. About 9,000 jobs will spin out of this plant, from manufacturing supply jobs to retail.

"There are hundreds, if not thousands, of supplier jobs more secure now because of this announcement: Jobs in manufacturing, in the raw materials sector, the butcher, the baker, the candlestick maker, will all get work because of this. That means there will be more construction, property values will rise, more ice rinks will open, there is no end to the impact of a plant like this," DesRosiers said.

The land Toyota will build on, near where Highway 401 exits to Highway 2 in what is now Blandford Blenheim Township, will be amalgamated into the City of Woodstock by the fall as part of the deal.

One piece of the land parcel, the 40-hectare (100-acre) Blandford Square Mall, is the lone holdout, refusing to sell for what the county is offering and pledging a legal battle if the county expropriates.

However, the county is now considering a recent counter-offer from owner First Summit and has not yet moved to expropriate, Woolcott said.

Political and business officials at the announcement yesterday at Huron Park secondary school in Woodstock seized upon the timing, the day before Canada Day, in commenting on the announcement.

"Canada marks its 138th birthday and I cannot think of a better birthday present than a new Toyota plant right here in Woodstock," Tanguay said.

"Woodstock makes sense for a lot of reasons, its proximity to Cambridge and suppliers in the U.S. and Canada. I know we will be warmly welcomed in Woodstock and we are looking forward to repaying your trust with good jobs and a deep commitment to corporate citizenship."

Toyota currently employs 4,300 in Cambridge making 288,000 vehicles and this plant will bring Toyota's investment in Ontario to $4 billion, he said.

Premier Dalton McGuinty also attended the announcement, boasting Ontario has become a world leader in the automotive industry and that since his election, the province has landed $5 billion in investment.

"I just want to say thanks for their jobs, thanks for the families they support, and thanks for enhancing the quality of life. Thanks for choosing Ontario," McGuinty said.

RAV 4 SPECIFICATIONS

ENGINE: 2AZ-FE (standard)

2.4 Litre

4 Cylinder

Double Overhead Cam

16-Valve

Variable Valve Timing with Intelligence (VVT-i)

Sequential Multiport Electronic Fuel Injection

ULEV (Ultra Low Emissions Vehicle)

Heavy Duty Battery, Starter, Alternator and Heater

Stainless Steel Exhaust System

Compression Ratio - 9.6:1

Horsepower - 161 (120) @ 5700 rpm

Torque - 165 lb.ft. (224) @ 4000 rpm

FUEL ECONOMY L/100 Km (mpg)

Fuel Consumption Rating, City/Highway

10.7/8.1 (26/35) - 5-Speed Manual (standard)

10.5/8.1 (27/35) - 4-Speed Automatic (optional)

CAPACITY

Seating Capacity - 5 (S)

Cargo Capacity - m3 (cu. ft.)

1.909 (67.4) - Behind Front Seats - Max. (S)

.678 (23.9) - Behind Rear Seats - Max. (S)

Fuel Capacity - litres (gal.)

56 (12.3) (S)

Towing Capacity - kg (lbs.)

680 (1500) (S)





Copyright © The London Free Press

[oceanmdx]

^^^^ LOL, you just beat me on that story by a few minutes.

[ldoto]

:eek2: More than 50,000 people are expected to apply for the 1,300 high-paying jobs that will open at Woodstock's new Toyota Canada assembly plant.

But Toyota spokesperson Greig Mordeau says just one of every 40 applicants will land a job -- and the resume deluge has already begun.

"We have been swamped in the past and frankly, we want to be swamped because we have a rigorous selection process and a lot of people drop off."

Ray Tanguay, president of Toyota's Canadian operations, said the company has developed an elaborate recruiting process.

"We are basically looking for team players. We have 15 different dimensions we are looking for to see if assembly work is compatible for them," Tanguay said.

Toyota wouldn't detail what those dimensions are.

The company also uses the Japanese "kaizen" system, in which workers are organized in teams, complete with company uniforms.

The flood of applications started well before yesterday's announcement. Illustrating how attractive the jobs are, one man from Scarborough recently attempted to drop a resume at Woodstock's Toyota dealership, said sales manager Frank Vitorino.

The prize drawing all the interest is a good paycheque and a steady job.

Assembly line employees at Toyota's Cambridge plant earn a top wage of $31.60 an hour and enjoy fringe benefits that include a 21,000-square-foot gym and recreation area.

Unlike most assembly plants, the Toyota Cambridge plant is not unionized, but Mordeau said wages have to be competitive with unionized plants. "It's a competitive market and people work hard for that money," he said.

Mordeau said Toyota has never laid off a full-time production worker. He said downturns in the business are handled through contract work and adjusting work hours.

Mordeau said the company normally requires a high school education but the production jobs, apart from the skilled trades, do not require technical expertise.

The Cambridge plant was opened in 1988 and employs 4,300 people. Last week, the plant's employees enjoyed a picnic at Kitchener's Sportsworld.

"This is a nice place to work. We get a lot of young folks with young families," Mordeau said.

Earlier estimates had put the number of assembly jobs at 1,500, but Toyota said yesterday the correct figure is 1,300.

WHERE TO APPLY

Mail:

Human Resources Department

1 Toyota Place

Scarborough, Ont.

M1H 1H9

E-mail

Human_Resources@toyota.ca

Fax

(416) 431-1871





Copyright © The London Free Press

[ldoto]

Mall price status disputed



A Toronto firm says it backed off Blandford Square before the Toyota deal evolved.
A Toronto real estate investment firm ended its interest in buying Blandford Square Mall before Toyota -- and expropriation -- entered the picture, a company official said yesterday.

Joe Chetti, owner of Blandford Square Mall, claims he has a $14.8-million offer from Retrocom Investment Management Inc., which was put on hold by talk of expropriation.

However, a cash offer was never made, said one Retrocom official. The business was interested in acquiring the mall through a land swap, but those talks ended quickly before a formal offer was made.

"The talks with Chetti were long off the rails before expropriation," said the official. "We never got very far in that process. Every time we zigged, he zagged. He is not someone we were able to deal with."

Retrocom also questioned an appraisal Chetti had of the mall site, for more than $16 million, saying when Retrocom's appraisers studied it they did not agree.

"We even took it to a few other appraisers," who did not agree, the official said.

"We had an interest in the mall, but not at that price."

Chetti said yesterday he has sent Oxford County officials a copy of the offer from Retrocom as proof Blandford Square Mall is worth more than the $4.5 million the county has offered.

"We have a real offer, on the table, for close to $15 million and I have now sent that to the county," said Chetti. "We had accepted that offer and we have put it on hold."

The 40-hectare mall site is considered the final piece in the county's land assembly strategy for Woodstock's Toyota automotive assembly plant, announced last week.

Chetti says he will not settle for less than the Retrocom offer, fighting expropriation in court if necessary. He has also made a second offer to the county that would see him keep the mall and give the county 20 hectares of land around the mall, and also give Toyota access through the mall site.

Oxford County officials are considering Chetti's last offer, said Warden Don Woolcott.

"We are still studying the offer he presented to us weeks ago. It is complex and we want to make sure we have all the information we need to respond to it," said Woolcott.





Copyright © The London Free Press

[ldoto]

The construction giant has experience with Cami and other auto plants.





London construction giant Ellis-Don is lining up to bid on Woodstock's new Toyota automotive assembly plant.

The size of the plant, and the speed with which it has to be built, means only a handful of construction companies will bid on the work, said Brian Waltham, vice-president Southwestern Ontario for Ellis-Don.

"We are going after it -- there is no doubt about that. We are now waiting to see how quickly they will ask for bids. We will be very interested," he said.

Ellis-Don built the last automotive assembly plant in the region, Cami Automotive in Ingersoll, as well as Toyota's plants in Cambridge.

"It will be a very fast project. They always are. We will have to do a lot of construction in a short time."

Toyota Motor Manufacturing Canada Ltd. will invest $800 million in the operation and has said it wants site preparation to begin in September, with the RAV4 entry-level sport utility vehicle rolling off the line in 2008.

That means construction will have to start in the spring of 2006 and be done by 2007, said Waltham.

"We will be going like crazy. They will tell us how long we have, but it will be quick, we know that," he said.

Ellis-Don has also done work at Ford's St. Thomas assembly plant and for GM in Oshawa and has built London automotive parts suppliers Keiper and Budd Automotive.

Last week Oxford County won the new Toyota assembly operation, which will employ 1,300 and be built on a 400-hectare parcel of land in Blandford-Blenheim Township, near Woodstock.

It will produce about 100,000 vehicles a year.

JOB PROSPECTS

- The region's newest employer will not be accepting resumes until the fall and will only accept them online.

- Toyota Canada has been receiving faxed and e-mail resumes and they will not be accepted, said the automaker.

- Applicants must apply to Toyota Motor Manufacturing Canada Ltd., a different company, at www.tmmc.ca in the fall.





Copyright © The London Free Press

[oceanmdx]

One thing, since when is Budd Automotive located in London?

[oceanmdx]

I looked it up myself. Budd established a small plant in London 2 years ago. About 30 years ago I worked at the Kitchener plant as a summer job (for 3 summers).

http://www.buddcompany.com/NewsDesc.asp?id=135

[ldoto]

Wed, October 12, 2005



WOODSTOCK -- As dignitaries spoke superlatives under a tent at the Toyota construction site yesterday, heavy work was rumbling in earnest a few hundred metres away.

Five bulldozers, 17 scrapers and five packers were labouring to prepare the 1,000-acre site for an $800-million plant.

Excavator operator Mike Munday of Dufferin Construction has seen how similar large projects can revitalize their host cities: "It's going to change Woodstock," he said.

The workboots-and-hardhat approach was in stark contrast to the cleaner-than-clean, dark-suited groundbreaking ceremony that featured Toyota Motor Corp. president Katsuaki Watanabe, Prime Minister Paul Martin and Premier Dalton McGuinty.

"We love Canada and we look forward to a long and prosperous future in Woodstock," Watanabe said.

It's the first new auto plant in Canada in almost 20 years and Watanabe said Woodstock was chosen because of nearby parts suppliers and the proximity of the Cambridge Toyota plant.

The plant, which will make a new generation of Toyota RAV4 sport utility vehicle, will employ 1,300. Martin said each job is expected to spin off into another five in the automotive sector.

Mayor Michael Harding -- the only speaker who tried to address the 500 guests in English, French and Japanese -- compared Woodstock's feat to a movie script.

"If you believe in the impossible, the improbable can come true. . . . Welcome to Woodstock's field of dreams."

This was the city's second chance after losing a shot at an auto plant two decades ago.

"The day after Valentine's day, 2005, we knew we had it and we began to lie to everybody (that we didn't)," the mayor said later.

Ray Tanguay, president of Toyota Motor Manufacturing Canada, said the new RAV4 will be larger and more environmentally friendly.

McGuinty praised the local workforce. "We've proven we can compete in this highly competitive automotive industry," he said.

Jim McKinnon, business manager for London Local 1059 of the Labourers International Union, said: "This is going to be great for the construction industry in London, too, because a lot of the tradesmen will be needed from across the region." :)

[rapideye95]

Now someone is competing with Honda eh?

[ldoto]

There's even more potential good economic news for Woodstock today, and again.. it involves Toyota.

Just weeks after the sod turning for the new Toyota car plant, a report this morning that a small truck plant could be coming to Woodstock as well.

Published reports say Toyota's truck subsidiary is considering building a small assembly plant in the Woodstock area.

An executive of the truck unit called Hino Motor Sales Canada confirmed Toyota will probably decide in the next month whether to build a plant in Canada next year to assemble medium-duty trucks.

Canada is said to have an excellent chance of winning the plant, and if Hino chooses Canada, Woodstock is the leading site choice.

A Canadian plant would cost $15-million and employ up to 50 workers producing about two-thousand vehicles a year.