Toyota to begin producing Lexus NX in Canada in 2022
Toyota Motor Corp. in 2022 will begin manufacturing its Lexus NX luxury crossover at its Cambridge, Ontario plant, the carmaker said on Monday, a boon for a region that has experienced job cuts due to the pending closure of General Motors and Fiat Chrysler plants.
"As the compact luxury SUV market continues to grow, building the NX in North America allows us to better serve our customers and dealers,” North America CEO Jim Lentz said at an event attended by Prime Minister Justin Trudeau and other government officials.
Toyota is expected to make a "significant" financial investment once an exact production location is determined, a spokesman told FOX Business. The Cambridge plant includes two separate facilities.
The selected factory will produce both the standard Lexus NX and the hybrid version. The venture is not expected to result in new jobs and none were announced by Toyota on Monday.
The company previously invested roughly $1.1 billion in two Ontario plants to produce the RAV4. Starting in 2020, however, a hybrid version of the sports utility vehicle will be manufactured at Toyota's Kentucky plant.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TM | TOYOTA MOTOR CORP. | 169.67 | -2.89 | -1.68% |
The expansion in Canada comes as other carmakers exit the area. Last year, GM announced it would shutter one of its Canadian plants by the end of 2019, part of a slew of factory closures that are expected to result in over 10,000 job losses.
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As Toyota ramps up production in Canada, other carmakers are pouring investment into U.S. plants. Chrysler, for example, is investing $4.5 billion to build a new production plant in Michigan. Toyota also recently announced a $750 million investment in five American facilities, as well as a separate $600 million investment in its Princeton, Indiana plant.