Toyota Plant Grand Opening Will Create 1200 New Auto Jobs -- Minister Clement Congratulates Toyota on Achievement

WOODSTOCK, Ontario, December 4, 2008 — About 1200 people will receive new auto sector jobs thanks to a new Toyota Motor Manufacturing Canada assembly plant that officially opened today.

"In a time of global economic instability, it is crucial that the federal government provide stable management of the economy," said the Honourable Tony Clement, Minister of Industry, who was joined by Katsuaki Watanabe, President of Toyota Motor Corporation, and the Honourable Dalton McGuinty, Premier of Ontario. "While there is no question that the auto sector will continue to face serious challenges in the near future, by working together, we can ensure that this industry will continue to prosper and guarantee long-term jobs for Canadians."

The new Woodstock facility will produce Toyota's compact SUV, the RAV4. It will initially have an annual capacity of producing 75 000 units per shift.

The long-term benefits of the new Woodstock assembly plant will be significant. The plant has created 1200 new jobs and increased Toyota's assembly capacity in Canada from 300 000 units to 375 000 units, making the combination of plants in Cambridge and Woodstock the second-largest operation among Toyota's wholly owned North American facilities.

In addition to the direct benefits of this investment, the new plant offers significant opportunities for local parts sourcing, investment and employment through Toyota's suppliers in Canada, as well as substantial spinoff benefits in the local community.

"Our government will always invest the taxpayers' dollars wisely in order to protect and create secure, well-paying Canadian jobs," concluded Minister Clement. "We will do what it takes to ensure that the workers and communities that depend on our auto sector will always be able to compete and succeed."

For further information (media only), please contact:

Pema Lhalungpa
Press Secretary
Office of the Honourable Tony Clement
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502

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Backgrounder
Government of Canada Support to the Auto Sector

The Government of Canada is acting to stimulate investment and protect Canadian jobs during a challenging time in the global economy.

The government's long-term economic vision is a bright one for the future of our country, and it is reflected in our recent budgets and fiscal updates. Thanks to strong, stable economic management, Canada is better placed to promote long-term investment, innovation and job creation than any other G8 economy.

This economic leadership includes serious action to help the auto sector. The federal government is taking a number of steps to improve the overall competitive environment for the auto industry through measures such as corporate tax cuts and accelerated capital cost allowances.

Specifically, the Government of Canada's commitment to assisting the auto industry is to encourage investment and protect jobs based on the following measures:

• continuing to sustain a fiscal and economic framework that keeps the industry competitive;
• supporting an integrated North American auto sector;
• investing in automotive research; and
• creating a new Automotive Innovation Fund (AIF).

To date, the government has provided more than $1 billion in tax relief for the automotive sector through lower federal corporate taxes and higher writeoffs for investment in machinery and equipment. By 2012-13, the government will have provided more than $9 billion in tax relief to the manufacturing sector.

The Government of Canada is also improving the Windsor–Detroit border crossing — where 28 percent of Canada-U.S. trade passes mainly across a single, privately owned bridge that was built in 1928. The goal is to have a new crossing before the bridge reaches full capacity, which is expected to occur between 2015 and 2018.

The government has also invested over $2.4 billion in new money since Budget 2006 for science and technology research, including $34 million per year for new research through the Natural Sciences and Engineering Research Council of Canada that will go specifically to research in key industries such as the auto sector. An additional $23.2 million is being invested in the AUTO21 program that supports more than 260 researchers and 500 students working on 41 auto-related research and development projects at the University of Windsor.

In Budget 2008, the government established the $250-million AIF in support of strategic, large-scale research and development projects. The AIF will help the auto industry retool for a new, environmentally conscious, fuel efficient age.

Financing Instruments

Export Development Canada (EDC) and the Business Development Bank of Canada (BDC) provide a range of financing services for Canada's automotive sector.

The federal government has recently increased support for Canada's automotive sector with a $2-billion increase in the borrowing authority of EDC and a $1.8-billion increase in the borrowing capacity of BDC.

EDC has a number of services specifically designed for the auto sector, including financing and insurance capacity in that sector. Meanwhile, BDC has introduced a number of measures to support the auto sector including making more loans and a dedicated team to assist Ontario auto parts manufacturers.

With the onset of the liquidity crisis, BDC has introduced a number of measures to help small and medium-sized businesses, including those in the auto sector that are in need of financing. These measures include an offer to postpone the payment of principal on outstanding loans, the creation of a dedicated team to help Ontario auto parts manufacturers, and the launch of a new working capital loan to support market expansion by small and medium-sized enterprises.

Future Actions

The Government of Canada is prepared to take further action to assist the auto industry provided that such action is in the long-term best interest of local communities, employees and the Canadian taxpayer.

In particular, the governments of Canada and Ontario are exploring ways they can cooperate in the future. On November 28, 2008, Industry Minister Tony Clement and Ontario Economic Development Minister Michael Bryant co-signed a letter calling on North America's major domestic automakers to provide restructuring plans as a precondition for future support.

On December 2, 2008, the governments of Canada and Ontario appointed Jim Arnett as a special advisor to develop specific future initiatives for the auto sector.

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Backgrounder
Grand Opening of Toyota Assembly Plant in Woodstock

Toyota Motor Corporation is the world's second-largest automaker and is one of six global automakers to have light-vehicle assembly plants in Canada. The company produces and sells Toyota, Lexus and Scion brand vehicles and products in North America. Its sales, manufacturing and engineering operations in the U.S., Canada and Mexico are overseen by Toyota Motor North America Inc. in New York City. In addition to selling vehicles and parts in Canada, Toyota operates two assembly plants in Cambridge, Ontario; an aluminum wheel plant in Delta, British Columbia; and a cold weather testing centre in Timmins, Ontario.

On December 4, 2008, Toyota celebrated the grand opening of its new assembly plant in Woodstock, Ontario. This new facility, situated on 1000 acres, will initially employ 1200 people and produce 75 000 vehicles annually (Toyota RAV4). The facility is the first greenfield assembly site in Canada since the mid-1980s.

The plant will employ innovations such as splatterless robotic welding, a waterborne paint cartridge system, leading-edge wastewater treatment/recycling and air filtration systems, and reusable/recyclable packaging.

In 2007, Canada accounted for 7.0 percent of Toyota's North American sales, 18.2 percent of its vehicle production, 14.2 percent of its engine production, and all of its wheel production.