Thinas Green

2015-04-15 12:40:07 -0400

Toyota moving Corolla production to Mexico from Ontario

Ontario plant will still be used to build cars, but company hasn’t specified which ones

Pete Evans CBC News

Posted:Apr 15, 2015 9:33 AM ET

Last Updated:Apr 15, 2015 12:19 PM ET

The Rav4 is one of the cars that Toyota builds in Woodstock, Ont. The company said Wednesday it plans to use the plant for more models soon.



The Rav4 is one of the cars that Toyota builds in Woodstock, Ont. The company said Wednesday it plans to use the plant for more models soon. Dave Chidley/Canadian Press



Toyota will spend $1 billion to invest in an assembly plant in Guanajuato, Mexico, and move production of its popular Corolla sedan there from another plant in Cambridge, Ont.



The Mexican factory will have the capacity to crank out 200,000 cars a year, bringing an end to the production of the Corolla in Canada. It is one of the best-selling cars in the country and had been built here since the plant opened in the 1980s.



Toyota has made more than three million Corollas in Ontario since opening its first plant, but from now on, all Corollas sold in North America will either be built either in the Mexican plant, or an existing one in Mississippi.

New role for Cambridge plant



Toyota says Wednesday’s news doesn’t mean the end for the Cambridge plant, however. It will “switch from producing Corollas to mid-sized, higher-value vehicles,” although a release Wednesday doesn’t specify which ones.



The two plants currently produce Lexus models, the RAV4 sport-utility vehicle and the Matrix hatchback, in addition to the Corolla.



“We are thrilled to invest further in North America so we can better meet the needs of our customers for decades to come,” said Jim Lentz, chief executive officer of Toyota’s North American unit.

Toyota Milestone-Mississippi



A worker at Toyota’s Mississippi plant. After Wednesday’s move, the plant will be one of the two places where the company builds its popular Corolla sedan. (The Associated Press)



“Transforming our Canadian vehicle assembly plants is an equally important part of our strategic plan to position the North America region for sustainable long-term growth.”



Toyota recently invested $100 million into the Cambridge-area facilities, which the company says added about 400 new jobs while introducing hybrid production and increasing capacity at the plants.



The first Corollas from the 2020 model year will start rolling off the line in Mexico some time in 2019.



Separately, Toyota said Wednesday it will be adding a third production line to its existing plant Guangzhou, China, at a cost of about $440 million. That line is to be completed

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