CAMBRIDGE, Ont. - In another sign that conditions in the Canadian auto industry are improving, Toyota Canada plans to hire 800 more people at its plant in the southern Ontario town of Woodstock.

Toyota said Thursday it will add a second shift to the plant to build more of its popular RAV4 sport utility vehicle beginning next March.

"Thanks to high demand for this popular vehicle, we are able to increase production in Woodstock," said Ray Tanguay, president of Toyota Canada.

"We are very pleased to be able to continue our growth and provide jobs in the local community... This move demonstrates Toyota's continued commitment to North American production and to building where we sell."

The new jobs will boost total employment at Toyota Canada to 6,500 people. The automaker will begin hiring this month.

"The increase in RAV4 production means the addition of a second shift in Woodstock, the creation of 800 new jobs, more work for the entire supply chain -- and most importantly it means that Toyota has confidence in Ontario's workforce and business climate," said Sandra Pupatello, Ontario's minister of economic development and trade.

"This is a strong and tangible recognition of our highly skilled workforce, our competitive business environment and that Ontario is the best place in the world to build cars," added federal Industry Minister Tony Clement.

The new shift will increase RAV4 production at Woodstock to 150,000 vehicles, and the majority of RAV4s for the North American market will now be built in Ontario, Toyota said.

Toyota Canada also builds the Corolla, the Matrix and the Lexus RX350 at its other assembly plant in Cambridge, Ont.