Toyota plans to invest more than $80 million to upgrade the Woodstock, Ontario Plant which will boost capacity of its RAV4 compact crossover.
The $80 million investment will increase production of RAV4 from 150,000 units to 200,000 units, creating 400 extra jobs.
“We are optimistic that the market is coming back and we’re grateful for the strong sales of the RAV4 in the North American market, which has created this increase in production and jobs,” said Toyota chairman Ray Tanguay.
The reason for the plant expansion is not certain, since demand for the RAV4 has not increased, on the contrary sales have decreased by about 5% this year. 2011 also brought a sale decrease due to the earthquake and tsunami in Japan and massive flooding in Thailand. Most RAV4models for the U.S. market are produced in Canada, but the company imports more than 10% of its U.S. RAV4 supply from Japan. On the other hand, Toyota Canada reported sales rose 31% year-over-year in February with 12,384 Toyota, Lexus and Scion vehicles sold.
“This is great news for the auto industry in Ontario and shows the strength and diversity of the sector in the province. This expansion demonstrates that Ontario made the right decision by supporting the development of Toyota’s manufacturing presence here in Ontario,” declared Ontario’s Minister of Economic Development and Innovation Brad Duguid.