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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
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