Corolla production moving from Ontario to Mexico.
04-15-15, 05:48 PM
#1
Lexus Fanatic
Thread Starter
Corolla production moving from Ontario to Mexico.
Hope this isn't a repost....didn't see it during a search.
Toyota is going to transfer Corolla production for North America from Ontario to a new $1 billion plant in Mexico.
My first (and perhaps premature) reaction to this release was that it was just corporate double talk for simply going where labor and costs are cheapest. But on closer look, that may not totally be the case, as it is going to cost big money for the plant itself, and it is somewhat unclear as just what will happen to the existing Corolla factory space in Ontario, and what it will be used for. So, I'll reserve judgement for now.
http://www.cbc.ca/news/business/toyo...ario-1.3033661
Ontario plant will still be used to build cars, but company hasn't specified which ones
Toyota will spend $1 billion on 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.
Toyota said 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.
"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 Government of Ontario put a positive spin on the news, noting that Toyota has a long history in the province and there's no indication that Wednesday's news changes that.
"Toyota has been a great partner and contributor to Ontario's economy since first opening here almost 30 years ago, and since that time, they have invested almost $7 billion, creating thousands of jobs," Economic Development Minister Brad Duguid said.
"We have been assured that with today's announcement, Toyota will continue investing in the province, and ensure that Ontario plays a key role in Toyota's sustainable, long-term growth in North America."
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 in Guangzhou, China, at a cost of about $440 million. That line is to be completed by 2017, for a model the company declined to disclose.
Toyota is going to transfer Corolla production for North America from Ontario to a new $1 billion plant in Mexico.
My first (and perhaps premature) reaction to this release was that it was just corporate double talk for simply going where labor and costs are cheapest. But on closer look, that may not totally be the case, as it is going to cost big money for the plant itself, and it is somewhat unclear as just what will happen to the existing Corolla factory space in Ontario, and what it will be used for. So, I'll reserve judgement for now.
http://www.cbc.ca/news/business/toyo...ario-1.3033661
Ontario plant will still be used to build cars, but company hasn't specified which ones
Toyota will spend $1 billion on 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.
Toyota said 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.
"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 Government of Ontario put a positive spin on the news, noting that Toyota has a long history in the province and there's no indication that Wednesday's news changes that.
"Toyota has been a great partner and contributor to Ontario's economy since first opening here almost 30 years ago, and since that time, they have invested almost $7 billion, creating thousands of jobs," Economic Development Minister Brad Duguid said.
"We have been assured that with today's announcement, Toyota will continue investing in the province, and ensure that Ontario plays a key role in Toyota's sustainable, long-term growth in North America."
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 in Guangzhou, China, at a cost of about $440 million. That line is to be completed by 2017, for a model the company declined to disclose.
04-15-15, 06:07 PM
#2
Lexus Fanatic
This is not such a big deal. More like a "so what". Glad I got mine from Cambridge.
As for what they are going to produce, I guarantee it will be the next GX/TX cross over.
As for what they are going to produce, I guarantee it will be the next GX/TX cross over.
04-15-15, 06:12 PM
#3
Well, considering it's the only plant outside of Japan to produce Lexus vehicles (I think it's just the RX, right?), my money is on the NX (if it's banking on it becoming popular), or perhaps a hybrid? like the Camry and Camry Hybrid.
04-15-15, 06:18 PM
#4
Lexus Fanatic
I didn't even think of the NX as a possibility. I believe the ES has started production in the USA has it not?
04-15-15, 06:20 PM
#5
Lexus Fanatic
Thread Starter
Starting this year, ES350 production will be at the Georgetown, KY plant......which is probably not surprising, considering that the mechanically similar Camry and Avalon are also built there.
Last edited by mmarshall; 04-15-15 at 06:27 PM.
04-15-15, 06:33 PM
#6
Lexus Fanatic
Thread Starter
Trending Topics
04-15-15, 07:02 PM
#8
Lexus Fanatic
Thread Starter
04-15-15, 07:21 PM
#9
The RX is already built in Cambridge.
I didn't know that. I guess mmarshall said it has. That's great for the Kentucky plant!
I didn't know that. I guess mmarshall said it has. That's great for the Kentucky plant!
04-15-15, 07:27 PM
#10
Lexus Fanatic
Thread Starter
Originally Posted by Nextourer
I didn't know that. I guess mmarshall said it has. That's great for the Kentucky plant!
04-15-15, 08:23 PM
#11
Lexus Champion
Toyota to move Corolla production to Mexico
This is what a Canadian auto-review website said.
They speculate that the 3-row TX will be built at Toyota Motor Manufacturing Canada in Cambridge, in the place of the Corolla. Cambridge has 2 assembly lines, one building the Corolla and the other building the RX (and previously the Solara convertible). The RX line is the only line outside of Japan to build a Lexus product (until the ES starts rolling out of Kentucky).
When TMMC announced investments in Cambridge and Woodstock (the other TMMC plant, building the RAV4) a year or so ago, my thought was that they would build a RAV4 Hybrid or perhaps a Lexus model based on the RAV4 platform (now known as the NX) at TMMC Cambridge or Woodstock.
It would be a great source of pride to know that Cambridge can build 2 Lexus products. Let's hope that is the case.
Whatever they announce, we here in Southern Ontario (not far from Cambridge) hope that no jobs will be cut, but as the editors of Autos.ca speculate, losing the Corolla will likely mean a cut in jobs, which would likely spell a cut in auto-suppler jobs also.
Source: Autos.ca
2019 may be the FMC for the Corolla. What other Toyota or Lexus model is likely due for a MMC or FMC in 2019 / 2020?
They speculate that the 3-row TX will be built at Toyota Motor Manufacturing Canada in Cambridge, in the place of the Corolla. Cambridge has 2 assembly lines, one building the Corolla and the other building the RX (and previously the Solara convertible). The RX line is the only line outside of Japan to build a Lexus product (until the ES starts rolling out of Kentucky).
When TMMC announced investments in Cambridge and Woodstock (the other TMMC plant, building the RAV4) a year or so ago, my thought was that they would build a RAV4 Hybrid or perhaps a Lexus model based on the RAV4 platform (now known as the NX) at TMMC Cambridge or Woodstock.
It would be a great source of pride to know that Cambridge can build 2 Lexus products. Let's hope that is the case.
Whatever they announce, we here in Southern Ontario (not far from Cambridge) hope that no jobs will be cut, but as the editors of Autos.ca speculate, losing the Corolla will likely mean a cut in jobs, which would likely spell a cut in auto-suppler jobs also.
Cambridge plant to build “higher-value” vehicles
This is the kind of headline Ontarians—especially those who work in the province’s manufacturing sector—have come to dread in recent years: Toyota has announced that in 2019, it will move production of the Corolla compact to Mexico from the company’s Cambridge operation, in southern Ontario. On this press release, it’s the sub-head that matters, as that’s where the company says the move is part of a plan to “transform” one of its Cambridge plants to ready it for production of what it calls “mid-size, higher-value” vehicles.
You don’t have to follow the auto industry too closely to know that Corolla’s popularity in Canada practically makes it a brand unto itself, and that North America’s appetite for larger vehicles makes it sensible to build those vehicles where most of them will be sold.
In automaker-speak, “higher-value” means bigger profits, and there are no profits beefier than those gained from lower labour costs, and selling upscale vehicles that share platforms and components with low- and mid-priced models. Our guess, then, is that the mid-size vehicle that will take the Corolla’s place in the company’s Cambridge North is the three-row crossover Lexus (Toyota’s upscale brand) has been mulling for at least a year now to slot in between the current five-seat RX and truck-based GX and LX models. (The vehicle shown below is a concept rendering of what a three-row Lexus crossover might look like, though it’s a bit too Mercedes-Benz-ish to be believable.)
That plan makes sense to us because: for one, there are arguably no vehicle buyers in the world who like seven-seat crossovers the way North Americans do; and two, Lexus already builds the mid-size RX in its Cambridge South plant. If we’re correct in guessing a new three-row CUV would share the RX’s Toyota Highlander DNA, then it’s a great idea to build the RX and forthcoming TX (as the new model’s name is rumoured) in one place, so that any shared components can be pulled from same parts bins.
While the Corolla will be wrested away from the able hands of Toyota’s Ontario workforce, the company says it will leave RAV4 production where it is, in nearby Woodstock, Ontario.
Toyota makes this plan sound like a win-win, but reading between the lines, we’re sensing some public relations spin-spin at work.
The reason car companies build vehicles in developing nations like Mexico is to take advantage of cheaper labour costs. If we’re right about what vehicle will take the Corolla’s place in the Cambridge North factory, our fear is the change will result in fewer workers in Toyota’s Ontario workforce, and here’s why we think so: last year, Toyota sold nearly 50,000 Corollas in Canada, and averaged more than half that number each month in the U.S. By contrast, Lexus sold 8,000 RXs in Canada in 2014 and more than 100,000 to Americans; even if a new three-row model proves that popular, its production would still pale next to that of the Corolla, and that math adds up to fewer Ontario workers building Toyota vehicles.
All we can say is we hope Toyota proves us wrong about what this change will mean for Toyota’s Ontario workforce.
This is the kind of headline Ontarians—especially those who work in the province’s manufacturing sector—have come to dread in recent years: Toyota has announced that in 2019, it will move production of the Corolla compact to Mexico from the company’s Cambridge operation, in southern Ontario. On this press release, it’s the sub-head that matters, as that’s where the company says the move is part of a plan to “transform” one of its Cambridge plants to ready it for production of what it calls “mid-size, higher-value” vehicles.
You don’t have to follow the auto industry too closely to know that Corolla’s popularity in Canada practically makes it a brand unto itself, and that North America’s appetite for larger vehicles makes it sensible to build those vehicles where most of them will be sold.
In automaker-speak, “higher-value” means bigger profits, and there are no profits beefier than those gained from lower labour costs, and selling upscale vehicles that share platforms and components with low- and mid-priced models. Our guess, then, is that the mid-size vehicle that will take the Corolla’s place in the company’s Cambridge North is the three-row crossover Lexus (Toyota’s upscale brand) has been mulling for at least a year now to slot in between the current five-seat RX and truck-based GX and LX models. (The vehicle shown below is a concept rendering of what a three-row Lexus crossover might look like, though it’s a bit too Mercedes-Benz-ish to be believable.)
That plan makes sense to us because: for one, there are arguably no vehicle buyers in the world who like seven-seat crossovers the way North Americans do; and two, Lexus already builds the mid-size RX in its Cambridge South plant. If we’re correct in guessing a new three-row CUV would share the RX’s Toyota Highlander DNA, then it’s a great idea to build the RX and forthcoming TX (as the new model’s name is rumoured) in one place, so that any shared components can be pulled from same parts bins.
While the Corolla will be wrested away from the able hands of Toyota’s Ontario workforce, the company says it will leave RAV4 production where it is, in nearby Woodstock, Ontario.
Toyota makes this plan sound like a win-win, but reading between the lines, we’re sensing some public relations spin-spin at work.
The reason car companies build vehicles in developing nations like Mexico is to take advantage of cheaper labour costs. If we’re right about what vehicle will take the Corolla’s place in the Cambridge North factory, our fear is the change will result in fewer workers in Toyota’s Ontario workforce, and here’s why we think so: last year, Toyota sold nearly 50,000 Corollas in Canada, and averaged more than half that number each month in the U.S. By contrast, Lexus sold 8,000 RXs in Canada in 2014 and more than 100,000 to Americans; even if a new three-row model proves that popular, its production would still pale next to that of the Corolla, and that math adds up to fewer Ontario workers building Toyota vehicles.
All we can say is we hope Toyota proves us wrong about what this change will mean for Toyota’s Ontario workforce.
2019 may be the FMC for the Corolla. What other Toyota or Lexus model is likely due for a MMC or FMC in 2019 / 2020?
Thread
Thread Starter
Forum
Replies
Last Post
Gojirra99
Car Chat
7
07-03-06 01:11 PM