Toyota Motor Manufacturing Canada says it will start building the Lexus NX SUV in its Cambridge plant starting in 2022. The plant will produce both a standard and hybrid version of the vehicle to supply the North American market. Toyota will have extra capacity at the plant after announcing in March that it would shift production of the hybrid RAV4 SUV in Cambridge to its plant in Georgetown, Kentucky. Last year, the company committed to invest $1.4 billion in its Cambridge and Woodstock plants in Ontario. The federal government committed $110 million to support the investment. The new product announcement by Toyota comes after the Ontario manufacturing sector has been hit by major job loss announcements in recent months. General Motors Canada announced last November that it would close its Oshawa, Ont. plant by the end of the year at a loss of close to 3,000 jobs, while Fiat Chrysler Automobiles said in March that it would cut a shift at its Windsor, Ont. plant later this year at a loss of about 1,500 jobs. WATCH: Prime Minister Justin Trudeau was on hand for the announcement.<doc-sep>Share this Story: Spinoff benefits for local suppliers from Toyota announcement Spinoff benefits for local suppliers from Toyota announcement Photo by Geoff Robins / THE CANADIAN PRESS Article content Toyota Canada’s announcement Monday of new vehicle production at its Cambridge site is good news for southwestern Ontario automotive suppliers. Toyota President Fred Volf confirmed the company had picked its Ontario operations to produce the luxury SUV the Lexus NX and its hybrid version for the North American market. The new vehicles will begin rolling off the line in 2022. We apologize, but this video has failed to load. tap here to see other videos from our team. Try refreshing your browser, or Spinoff benefits for local suppliers from Toyota announcement Back to video Joining Volf for the announcement were Prime Minister Justin Trudeau and Ontario Health Minister Christine Elliott. “Besides getting a new plant, this is the next best thing,” said Jonathon Azzopardi, president of the Canadian Association of Mold Makers and the Windsor area’s Laval Tool. “I’m more excited about this than the FCA announcement of investment in Windsor. This sends the message that they’re going to be around for a long time.” Toyota’s three plants in Cambridge and Woodstock currently employ 8,000 workers. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content Getting a high quality, high value and highly profitable vehicle is a very good thing. President of the Automotive Parts Manufacturers Association Flavio Volpe said on average an auto plant will spend $10 to $12 billion per year with 30 per cent of that staying local. “Today’s announcement should add at least another half-billion per year,” Volpe said. There will also be new opportunities for regional suppliers because the vehicles being added at Cambridge carry Toyota’s flagship nameplate – Lexus. Photo by Geoff Robins / THE CANADIAN PRESS The premium-priced crossovers will come loaded with more content than a vehicle priced in the $30,000-$35,000 range such as the RAV4. “You’re looking at about $15,000 or more content per vehicle,” Volpe said. After the recent announcements of GM closing its Oshawa plant and FCA Canada eliminating the third shift and 1,500 jobs at its Windsor minivan plant, Toyota’s decision is a welcome reversal of dwindling production numbers in Ontario. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content Azzopardi said what’s exciting about this announcement is the nature of the products being added to the plant. The Cambridge site, which also produces the RAV4 and Lexus RX SUVs, is the only Lexus plant outside of Japan. “Getting a high quality, high value and highly profitable vehicle is a very good thing,” Azzopardi said. “These vehicles represent stability.” Volpe added Toyota is also sending an important message to the automotive sector in Canada. “The world’s biggest automaker is committing another luxury model to Ontario,” Volpe said. “Any OEM plant investment is valuable, but Toyota is number one and Lexus is their number one brand. They’re trusting their two best-selling vehicles to the workforce and suppliers of Ontario. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Article content “If you have Toyota as a customer, as long as you serve them well, you’re going to have business for a long time.” With the just-in-time concept used in the industry, a lot of the new parts, tools, some machinery and moulds will come from within 200 miles of Cambridge/Woodstock. Photo by Geoff Robins / THE CANADIAN PRESS One of those companies already serving Toyota’s Ontario and California operations is Windsor-based Radix Inc. The technology and software firm, which is now a division of Windsor’s AIS Technologies Group, supplies vision inspection systems and its Link2Logic software to Toyota. The software stores and backs up all the systems and information needed to run a plant. “It’ll put more stress on the supply chain, but good stress,” said Shelley Fellows, co-founder of Radix Inc. and vice-president of communications for AIS. Advertisement Story continues below This advertisement has not loaded yet, but your article continues below. Share this article in your social network Windsor Star Headline News Sign up to receive daily headline news from the Windsor Star, a division of Postmedia Network Inc. Email Address There was an error, please provide a valid email address. By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 Thanks for signing up! A welcome email is on its way. If you don't see it please check your junk folder. The next issue of Windsor Star Headline News will soon be in your inbox. We encountered an issue signing you up. Please try again Trending<doc-sep>Send this page to someone via email Toyota Motor Manufacturing Canada (TMMC) announced on Monday that it will begin to produce Lexus NX and NX hybrid SUVs at its plant in Cambridge in 2022. This is welcome news for a province that recently saw job cuts in the automotive sector by General Motors Oshawa and Fiat Chrysler in Oshawa. “(This announcement) means that Toyota’s manufacturing operations are here to stay,” TMMC president Fred Volf said at the plant on Monday. “It means that TMCC will continue to be a leader in manufacturing in Canada and globally. WATCH: Trudeau says past investments led to Toyota production announcement 1:45 Trudeau says past investments led to Toyota production announcement Trudeau says past investments led to Toyota production announcement – Apr 29, 2019 “And it means that TMMC will be building some of the most technologically advanced, most in-demand cars in the Toyota-Lexus global lineup.” Story continues below advertisement READ MORE: Trudeau has heated moment when asked to reconcile climate plan with pipeline purchase Volf was joined at the introduction by local leaders, Ontario’s deputy premier Christine Elliott and Prime Minister Justin Trudeau. Volf credited a recent $1.4-billion investment into TMMC’s Cambridge operations for allowing increased flexibility at the plants. WATCH: Trudeau says Cambridge is where they see ‘the real strength’ of economy 1:27 Trudeau says Cambridge is where they see ‘the real strength’ of economy Trudeau says Cambridge is where they see ‘the real strength’ of economy – Apr 29, 2019 Trudeau noted that the federal government contributed $110 million into that pot with an eye towards an announcement like Monday’s. “We made a $110-million investment from the federal government that secured a $1.4-billion investment from Toyota in the high-tech and advanced technology infrastructure that would make it possible to actually announce that the Lexus NX and Lexus NX hybrid will be built here in Cambridge,” he explained while fielding questions from the media after the announcement was made. Story continues below advertisement READ MORE: Doug Ford says Ontario government will fight carbon tax ‘with every tool’ possible The Toyota plant has been operating in Cambridge since 1988 and has now built more than eight million vehicles. It was announced in 2000 that the plant would be the first to build Lexus automobiles outside of Japan, and it now becomes the first to build the Lexus NX outside of that country. WATCH: New Lexus production in Ontario. Sean O’Shea reports. 1:47 New Lexus production in Ontario New Lexus production in Ontario – Apr 29, 2019 Ontario Premier Doug Ford has also been in Cambridge a couple of times of late as he continues his battle with the prime minister over carbon taxes, a fight that is currently in the court system. Trudeau was asked about his ongoing battle with the Ontario premier. Story continues below advertisement “First of all, I don’t think anyone can imagine that you can have a plan for the future of our economy if you don’t have a plan for the environment,” he explained before making reference to the flooding that has hit communities around the province, including Ottawa and Muskoka. WATCH: Trudeau defends climate change plan after criticisms from Doug Ford 3:51 Trudeau defends climate change plan after criticisms from Doug Ford Trudeau defends climate change plan after criticisms from Doug Ford – Apr 29, 2019 READ MORE: ‘What you’re doing is insincere’: Trudeau accused of delaying sandbagging amid Ottawa flooding “We are getting an all too real reminder this weekend that climate change is real and it has real impacts, with extreme weather events that are costing in the millions and, indeed, billions that are costing governments and therefore Canadians to clean up,” Trudeau said. Toyota announced Monday that starting in 2022 the company’s Cambridge plant would build the Lexus NX and said the production means it’s “here to stay” in Canada. Advertisement<doc-sep>
CAMBRIDGE, Ont. -- Toyota will start building the Lexus NX SUV at its Cambridge, Ont., plant starting in 2022, the company announced Monday, saying the move demonstrates its commitment to staying in the province. The plant will produce both a standard and hybrid version of the vehicle to supply the North American market. Fred Volf, president of Toyota Motor Manufacturing Canada, said the announcement is good news for Ontario auto workers. "It means that Toyota's Canadian manufacturing operations are here to stay," he said during a news conference at the plant held with the prime minister. Toyota will have extra capacity at the plant after announcing in March that it would shift production of the hybrid RAV4 SUV to its plant in Georgetown, Ky. Last year, the company committed to invest $1.4 billion in its Cambridge and Woodstock plants in Ontario. The federal government committed $110 million to support the investment. Prime Minister Justin Trudeau said government funding will always play a role in securing the future of the Canadian auto industry. "I think the question that Canadians rightly have about public money invested in any industry is, are we investing in the future of the industry or are we investing in keeping things the way they were?" Trudeau said. "We see that the auto industry is evolving rapidly and that's why ... being part of that and making those investments for the future also by investing in research, in science and in education and training for Canadians is how public investments are going to ensure that we continue to have great jobs right across Canada for many years to come." Trudeau said Toyota's decision amounts to a "significant" vote of confidence at a time when the auto sector is facing many challenges. The new product announcement by Toyota comes after the Ontario manufacturing sector was hit by major job loss announcements in recent months. General Motors Canada announced last November that it would close its Oshawa, Ont., plant by the end of the year at a loss of close to 3,000 jobs, while Fiat Chrysler Automobiles said in March that it would cut a shift at its Windsor, Ont., plant later this year at a loss of about 1,500 jobs.