Toyota to build 100,000 vehicles per year in Woodstock, Ont., starting 2008
11:06 PM EDT Jul 09
New President of Toyota Motor Corp. Katsuaki Watanabe said that the
automaker plans to build a new plant in Canada. (AP/Shizuo Kambayashi)
WOODSTOCK, Ont. (CP) - Ontario workers are well-trained.
That simple explanation was cited as a main reason why Toyota turned its
back on hundreds of millions of dollars in subsidies offered from
several American states in favour of building a second Ontario plant.
Industry experts say Ontarians are easier and cheaper to train - helping
make it more cost-efficient to train workers when the new Woodstock
plant opens in 2008, 40 kilometres away from its skilled workforce in
"The level of the workforce in general is so high that the training
program you need for people, even for people who have not worked in a
Toyota plant before, is minimal compared to what you have to go through
in the southeastern United States," said Gerry Fedchun, president of the
Automotive Parts Manufacturers' Association, whose members will see
increased business with the new plant.
Acknowledging it was the "worst-kept secret" throughout Ontario's
automotive industry, Toyota confirmed months of speculation Thursday by
announcing plans to build a 1,300-worker factory in the southwestern
"Welcome to Woodstock - that's something I've been waiting a long time
to say," Ray Tanguay, president of Toyota Motor Manufacturing Canada,
told hundreds gathered at a high school gymnasium.
The plant will produce the RAV-4, dubbed by some as a "mini
sport-utility vehicle" that Toyota currently makes only in Japan. It
plans to build 100,000 vehicles annually.
The factory will cost $800 million to build, with the federal and
provincial governments kicking in $125 million of that to help cover
research, training and infrastructure costs.
Several U.S. states were reportedly prepared to offer more than double
that amount of subsidy. But Fedchun said much of that extra money would
have been eaten away by higher training costs than are necessary for the
He said Nissan and Honda have encountered difficulties getting new
plants up to full production in recent years in Mississippi and Alabama
due to an untrained - and often illiterate - workforce. In Alabama,
trainers had to use "pictorials" to teach some illiterate workers how to
use high-tech plant equipment.
"The educational level and the skill level of the people down there is
so much lower than it is in Ontario," Fedchun said.
In addition to lower training costs, Canadian workers are also $4 to $5
cheaper to employ partly thanks to the taxpayer-funded health-care
system in Canada, said federal Industry Minister David Emmerson.
"Most people don't think of our health-care system as being a
competitive advantage," he said.
Tanguay said Toyota's decision on where to build its seventh North
American plant was "not only about money."
"It's about being in the right place," he said, noting the company can
rely on the expertise of experienced Cambridge workers to help get
Woodstock up and running.
Premier Dalton McGuinty said the money the province and Ottawa are
pledging for the project is well-spent. His government has committed
$400 million, including the latest Toyota package, to the province's
auto sector, which helped finance $5-billion worth of industry projects.
"I think that's a great investment that will more than pay for itself in
terms of new jobs and new economic returns," McGuinty said.
The provincial funds for the auto sector were drawn from a fund set up
to attract investments specifically in that industry. McGuinty said no
similar industry funds are being planned for other sectors, but added
the province wants to attract biotechnology companies - those working on
multibillion-dollar advanced medical research.
"What we have done for auto we would like to be able to do for biotech,"
he said. "That's where we're lending some real focus to at the present
Similarly, Emmerson said Ottawa is looking to help out industries that
create "clusters" of jobs around them - such as in aerospace,
shipbuilding, telecommunications and forestry - where supply bases build
around a large manufacturer.
> One reason they gave for setting up
> (in Quebec, I think) was the illiteracy
> they found in the American South. Apparently,
> there is a real problem with things like reading
> and writing down there. So much so that they've
> had to do things with symbolism instead of writing.
> That is pretty bad for a first world country.