Canada, Ontario Governments Kick in Millions for Toyota Plant Upgrades

Federal and provincial governments in Canada have offered more than $100 million (USD $77 million) for improvements to the Cambridge and Woodstock plants, CTV news is reporting.
The incentives are part of a $421 million (USD $323 million) investment that will be used for light metal stamping in Woodstock, which makes the RAV4, and plant improvements in Cambridge, which produces the soon-to-be-gone Toyota Corolla and Lexus RX vehicles. Toyota has said it will move the Corolla to Mexico, but hasn’t announced what would replace it at the Cambridge plant.
The Canadian government tipped in $34 million in 2013 for improvements to the Cambridge plant to produce the RX 450h.

Toyota’s announcement may be welcome news for Ontario’s car-building complex. Fiat Chrysler Automobiles CEO Sergio Marchionne recently told media in Toronto that building cars in Canada is becoming more expensive, and former Oshawa mayor John Gray calling for a GM boycott if the automaker doesn’t replace the Camaro when production ends in November.
Both Volvo and Land Rover have opted to build plants in Southern U.S. states that could potentially offer more in incentives than Canada’s most populous province, which is heaping more public debt on itself through public infrastructure projects.
The announcement could also signal a better working relationship between the governments and automakers. FCA may be looking for incentives as it prepares to make a $1 billion decision on its Brampton plant, which produces the Dodge Challenger, Charger and Chrysler 300.
Marchionne asked federal and provincial governments in 2014 for incentives to retool the company’s Windsor plant that produces minivans. After a contentious public debate over the size of the financial package requested, FCA decided to go it alone. The future of the Brampton plant, which will also require funding to finance retooling for the next-generation rear-wheel drive sedans, is uncertain.
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