by The Canadian Press
Toyota to announce $421M expansion in Cambridge, Ont.
The federal and Ontario provincial governments will partner to provide about $100 million for the project
TORONTO—Federal and provincial governments have put aside their differences and teamed up to provide financial assistance to help expand Toyota’s manufacturing operations in southern Ontario.
The two governments will provide a total of $100 million towards Toyota’s planned $421 million investment in the automaker’s Cambridge, Ont., operations.
The Canadian Press has learned the provincial Liberal government will give Toyota a grant of up to $42.1 million, or 10 per cent of the project’s cost.
The federal government will contribute about 14 per cent of the project’s cost in the form of repayable $58-million loan.
Sources familiar with the announcement say it had originally been planned for next week, but was moved up to Friday because of the expected federal election call this weekend.
Gary Goodyear, minister of state responsible for the Federal Economic Development Agency for Southern Ontario, will make the joint announcement with Ontario Economic Development Minister Brad Duguid in Cambridge.
Toyota Motor Manufacturing Canada Inc. has three plants in southwestern Ontario, with two in Cambridge that produce the Corolla sedan and the RX350 and RX450h, and one in nearby Woodstock producing the RAV4 SUV.
Last fall, Ontario provided an $85.7 million loan to help with Honda’s $857 million expansion of its manufacturing facilities in Alliston, north of Toronto.