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.


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    • 1 Second Ago
  • 12 Comments
      leo
      • 2 Years Ago
      why the check mark daytime running lights but Japan seems to be going the way of the US, move manufacturing outside to save cost
      reattadudes
      • 2 Years Ago
      this is a rather odd and misleading story. the RX has been produced for the North American market in Canada for YEARS. this is nothing new, so why does the story make it appear that way?
        The Wasp
        • 2 Years Ago
        @reattadudes
        I actually thought it was pretty clear -- the article points out that it is merely an increase in production, not a new line or new plant.
      The Wasp
      • 2 Years Ago
      I think the increase in production is one part of the story -- what I find more interesting is that they have a plan for a hefty increase in worker productivity. They currently produce about (74,000 / 6500) 11.4 vehicles per employee per year at this plant. In the future, they will have a 40% increase in production but only a 6% increase in employees. That will bring production to over 15 vehicles per employee. Clearly they must have many employees there not involved in production but it will be interesting if they are able to maintain the same level of quality control.
      tomatoflight
      • 2 Years Ago
      Dang! These Japanese companies are doing whatever they can to shift production out of Japan. I feel bad for their workers, way to sell your own people out for your "bottom lines". I also feel bad for we the people, who will suffer with lower quality.
        alexgreene77
        • 2 Years Ago
        @tomatoflight
        You are in no position to sit anyone down, clown. Cherry-picking statistics and your anecdotal evidence are irrelevant. Let's look at apples and apples, shall we? Lexus RX-350 is already made in Canada and is rated 5/5 by JD Power. The same JD Power that has given the Cambridge, ON plant in question its Golden Award last month for quality.
        alexgreene77
        • 2 Years Ago
        @tomatoflight
        They're not relocating to some 3rd world country to employ sweatshop labour. Canadians will benefit and Americans as well since the Toyota won't have to raise the prices. As far as your "lower quality" comment is concerned, I have to say you are absolutely clueless. Honda and Toyota vehicles made in Canada get on par and in some cases better reliability/quality ratings compared to the Japan-made models.
          tomatoflight
          • 2 Years Ago
          @alexgreene77
          Funny that Scion and Lexus which make most of their vehicles in Japan are higher up than Honda which makes more vehicles in NA. You are clueless and sloppy with your rebuttals. Having owned NA and JP made Japanese vehicles, the JP are superior in build quality. Sit down.
        Basil Exposition
        • 2 Years Ago
        @tomatoflight
        "way to sell your own people" "I also feel bad for we the people, who will suffer with lower quality" So Ironic
      Jeff
      • 2 Years Ago
      Every RX350 sold in the US is made in Canada, and has been since 2010, maybe even before that. This is not news....
      • 2 Years Ago
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      • 2 Years Ago
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