CAMBRIDGE, Ont. -- The federal and provincial governments have teamed up to provide about $100 million to help expand Toyota's manufacturing operations in southern Ontario.
The money will go towards the automaker's planned $421-million investment at plants in Cambridge and Woodstock.
Ottawa's contribution will be a repayable loan of $59 million -- about 14 per cent of the cost of the project -- while the Ontario government is kicking in a grant of $42.1 million, or 10 per cent.
Gary Goodyear, minister of state responsible for the Federal Economic Development Agency for Southern Ontario, made the joint announcement this morning with Ontario Economic Development Minister Brad Duguid in Cambridge.
"Today's announcement will create future jobs in the Ontario automotive industry and will maintain Toyota's existing employment levels at its Cambridge and Woodstock plants," Goodyear said. Toyota employs 8,000 workers at its Ontario operations.
The money will be used for a new light metal stamping line at the Woodstock plant and improvements in the Cambridge plant where the next generation of Lexus vehicles will be produced.
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.
The Canadian Taxpayers Federation called the government funding a "cruel joke on taxpayers."
"Toyota is one of the world's most successful corporations, with a global profit of more than US$18 billion last year," said CTF federal director Aaron Wudrick.
"Why on earth are our governments handing them a hundred million dollars from the public purse? Will any of them say with a straight face that Toyota needs this money?"
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.
Woodstock officials believe funding critical, residents not so sure
CTV London
For some, the idea of giving lots of public money to manufacturers isn’t palatable, especially at election time.
Woodstock Chamber of Commerce board member Jim Harrison says the funding is the first good news from the province and Ottawa since Toyota chose to locate in the city.
“It shows a coordinated effort on the part of both the federal and provincial government to say that automotive is important to southern Ontario. I mean, we know that it's critical to Woodstock. The amount of feeder companies within the town, plus Toyota itself, it's made a big impact.”
City officials say 4,000 manufacturing jobs have been created in the community since Toyota opened its doors.
While it's generally agreed that Toyota has been great for the local economy, there are cynics around.
“Right now, they're just buying votes and I don't like that, but what are you going to do? You've only got three parties,” one man says.
A woman questions why Toyota is getting money. “Toyota's a rich company.”
Len Magyar, Woodstock’s economic development commissioner, says if Ontario and Canada don’t provide funding, other areas will.
“Every jurisdiction we're competing with for investment, their governments are out there with incentive opportunities - whether it's Mexico, United States or Canada. All of them are doing that and basically if we want to be in the game, we've also got to play by the same rules.”
