In an effort to reduce the Yen's impact on its bottom line, Toyota says it will invest $100 million in its Cambridge, Ontario plant to increase output of the Lexus RX CUV. The Ontario factory is Toyota's only Lexus producer outside of Japan.

"This is a big and ambitious project with new technology, exacting standards and tight timelines," Brian Krinock, president of Toyota's Canada manufacturing unit, said in a press release. "Our team members have demonstrated time and time again that they thrive on these kinds of challenges."

The expansion will take the plant's Lexus capacity from 74,000 units a year to 104,000, including 15,000 RX 450h hybrids. By the time production begins in early 2014, the plant is expected to have added about 400 new jobs and take overall employment to 6,900 workers.
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Toyota to Expand Lexus RX Production in Canada
$100 Million Investment to Create Approximately 400 Jobs
North American Job Announcements Total 1,500 This Year

ERLANGER, Ky. (July 24, 2012) – Toyota Motor Manufacturing Canada Inc. (TMMC) announced today that it will invest more than $100 million and hire approximately 400 team members to increase Lexus production at its Cambridge, Ontario facility. Overall Lexus capacity will increase by 30,000 vehicles to 104,000 units, including 15,000 RX450h vehicles, the hybrid electric version of the popular Lexus.

Toyota is targeting early 2014 for expanded Lexus production. "This is a big and ambitious project with new technology, exacting standards and tight timelines," said TMMC President, Brian Krinock. "Our team members have demonstrated time and time again that they thrive on these kinds of challenges."

TMMC currently manufactures the Toyota Corolla, Matrix, RAV4, RAV4 EV models and the Lexus RX model in plants located in Cambridge, ON and Woodstock, ON. The company currently employs approximately 6,500.

"The team members at TMMC have shown tremendous dedication to creating high-quality Lexus vehicles," said Mark Templin, Lexus General Manager. "With rising demand for our RX 450h hybrids, moving that production to an award-winning North American plant is great news for Lexus. We look forward to partnering with TMMC to continue the tradition of manufacturing outstanding RX luxury utility vehicles."

Today's announcement is the latest in a string of Toyota North American production increase announcements since February at plants in Indiana, West Virginia, Kentucky, Alabama and the second in Canada. Cumulative investment total is approximately $745 million and more than 1,500 jobs are being added.

"This Lexus production increase, and the several announcements before it, reflects our growing optimism for an improving North American market and our intent to localize more production," said Steve St. Angelo, Executive Vice President of Toyota Motor Engineering & Manufacturing North America, Inc.