$100M in federal, provincial funding to go to Toyota expansion in Ontario
The Canadian Press
Published Friday, July 31, 2015 10:31AM EDT
Last Updated Friday, July 31, 2015 12:08PM EDT
CAMBRIDGE, Ont. -- The federal and provincial governments have teamed up to provide about $100 million to help expand Toyota's manufacturing operations in southern Ontario.
The money will go towards the automaker's planned $421-million investment at plants in Cambridge and Woodstock.
Ottawa's contribution will be a repayable loan of $59 million -- about 14 per cent of the cost of the project -- while the Ontario government is kicking in a grant of $42.1 million, or 10 per cent.
Gary Goodyear, minister of state responsible for the Federal Economic Development Agency for Southern Ontario, made the joint announcement this morning with Ontario Economic Development Minister Brad Duguid in Cambridge.
"Today's announcement will create future jobs in the Ontario automotive industry and will maintain Toyota's existing employment levels at its Cambridge and Woodstock plants," Goodyear said. Toyota employs 8,000 workers at its Ontario operations.
The money will be used for a new light metal stamping line at the Woodstock plant and improvements in the Cambridge plant where the next generation of Lexus vehicles will be produced.
Toyota Motor Manufacturing Canada Inc. has three plants in southwestern Ontario, with two in Cambridge that produce the Corolla sedan and the RX350 and RX450h, and one in nearby Woodstock producing the RAV4 SUV.
The Canadian Taxpayers Federation called the government funding a "cruel joke on taxpayers."
"Toyota is one of the world's most successful corporations, with a global profit of more than US$18 billion last year," said CTF federal director Aaron Wudrick.
"Why on earth are our governments handing them a hundred million dollars from the public purse? Will any of them say with a straight face that Toyota needs this money?"
Last fall, Ontario provided an $85.7-million loan to help with Honda's $857 million expansion of its manufacturing facilities in Alliston, north of Toronto.