Toyota Commits to Making Cars in Canada as U.S. Rivals Downsize
Heightened trade tensions between the U.S. and Canada have exacerbated a longer-term decline in Canadian vehicle production due...
Toyota Motor Corp.’s latest compact crossover will roll out of a plant in Ontario starting in December, a sign of the Japanese automaker’s commitment to making cars in Canada at a time when U.S. rivals are shrinking production in the country and newly arrived Chinese competitors are ramping up sales.
The updated, hybrid-only Lexus NX is one of three models made at Toyota’s 38-year-old factory complex in Cambridge, Ontario, along with the Toyota RAV4 crossover and Lexus RX SUV. While some of those are sold locally, about 85% are earmarked for export — mostly to the much larger and more lucrative U.S. market.
It also builds the RAV4 at another Ontario facility located about 30 miles away. The plants produced a combined 537,518 vehicles last year, making Toyota the largest vehicle manufacturer in Canada.
The U.S. is a crucial market for vehicles made in Canada and the sector has been hit hard by President Donald Trump’s tariffs on imports, which have eroded profitability and spurred some carmakers to downsize their operations in the country. The White House has threatened to increase tariffs on autos to 50% if a broader trade deal isn’t reached by January 1.
This story was originally published by SupplyChainBrain. Read the full story at SupplyChainBrain →
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