Skip to main content

Toyota Announces Corolla Exodus from Cambridge to Mexico for 2019

2014 Toyota Corolla at 2014 Georgian College Auto Show


This year marks the 50th year that Toyota has operated in the Canadian marketplace. In the decades that followed the introduction of the Crown and Land Cruiser, the auto brand's line-up has become a common sight on Canadian roads. Since 1988, the Toyota corporate entity has been greatly integrated with Canada when they commenced production in Cambridge, Ontario of their popular Corolla. Today, it has been announced a new direction for their North American manufacturing that involves removing production of the Corolla from Canada by 2019.

Described corporately as a realignment of North American manufacturing, Toyota's movement of vehicle production will send production of the Corolla to a plant in Mexico. Part of a billion-dollar investment the Mexican state of Guanajuato, Toyota's commitment for producing the Corolla in the country follows a late-2012 decision to co-produce the Canada's Yaris and the United State's iA in Mexico on a platform shared with the Mazda's subcompact car, the Mazda2. The temptation of lower labour costs has led to many auto companies seeking to increase their profit margin in the country south of the United States.

The Toyota Corolla is currently produced in the North Plant facility part of the company's Cambridge manufacturing operations. While there will be not Corolla production after 2018 (concluding after what will be 30 years built in Canada), Toyota has no plans to completely forsake their Canadian workforce; in fact, the automaker has new plans for the Cambridge plant. Starting in 2019, the Cambridge plant will be focused in the production of a mid-sized high-value vehicle. The question is, for whom will these future vehicles be presenting a higher value?

Higher value likely means more expensive Toyota products from the Lexus line. Featuring similar engineering and technology as the Toyota brand vehicles, cars and crossovers of Lexus can sell for thousands more based greatly on the nameplate. In recent years, Toyota Motor Corporation has drawn production of some Lexus vehicles out its traditional base in Japan. In 2003, the RX premium crossover utility was first built in Cambridge's South Plant (the first time a Lexus product was assembled outside of Japan). Crossover vehicles have also been favoured for automotive production in Canada for the 21st century. In the past two years, production of the Ford Edge and the Chevrolet Equinox has been re-upped inside the province of Ontario.

Toyota's operations at the South Cambridge plant and the facility in Woodstock will continue as usual. South Cambridge currently devoted to the Lexus RX 350 and RX 450h while the Woodstock plant is building the popular Toyota RAV4.

Though Toyota has reaffirmed their commitment to producing vehicles in Canada, the automaker's decision is the second time in less than a year Canadian vehicle production appears directly affected by the emerging threat Mexico is in luring auto manufacturing. In October, Ford chose to invest $2-billion in Mexico as opposed to their Windsor Assembly Plant.

Comments

Popular posts from this blog

IMSA WeatherTech SportsCar Championship: Acura Grand Prix of Long Beach Review

Photo Credit: Automobili Lamborghini S.p.A. untitled A companion to the NTT IndyCar Series finale weekend on the streets of Long Beach, the IMSA WeatherTech SportsCar Championship staged a 26-car race on Saturday consisting of DPi, GTLM and GTD class machines. With the conclusion of the 1-hour, 40-minute Acura Grand Prix of Long Beach sports car event, the overall winner was the #31 Whelen Engineering Racing Cadillac shared by the driving duo of Felipe Nasr and Pipo Derani. The victory was a decisive weekend for the Whelen Engineering Racing team that had scored the pole position and went on to take the checkered flag with a 10.95-second gap over the #01 Cadillac fielded by Chip Ganassi Racing with Kevin Magnussen and Renger van der Zande. Corvette Racing enjoyed a dominant outing in the GTLM category. Nick Tandy and Tommy Milner in the #4 Chevrolet Corvette C8.R beat the #3 car shared by Antonio Garcia and Jordan Taylor. Only three GTLM class vehicles ran at Long Be

Car FYI's 2024 Canadian Automotive Guide: Ferrari

Photo Credit: Ferrari S.p.A. Product Lineup: 296 GTB, 296 GTS, Portofino M, Purosangue, Roma, Roma Spider, SF90 Spider, SF90 Stradale, SF90 XX Spider, SF90 XX Stradale Overall Brand Impression:  The devotion of the Italian artisans that has kept Ferrari as a premium sports car leader stretches right back to the company’s founder. However, while Enzo Ferrari believed in the construction of pure performance machines in disregard for creature comforts, today’s vehicles are assembled with more consideration of customers seeking luxury alongside supercar power. Despite a long resistance to engaging in the popular crossover category, Ferrari demonstrates a level of concession to the mass market in 2024 by introducing the all-new Purosangue. The Purosangue joins an exciting 2024 Ferrari lineup that also includes the introduction of the brand’s first street legal XX program vehicle. What’s New for 2024:  Every vehicle in Ferrari’s 2024 lineup is a merger of style and power. An auto brand reno

Car FYI's 2024 Canadian Automotive Guide: Fiat

Photo Credit: Stellantis Product Lineup: 500e, 500x Overall Brand Impression:  When Fiat reentered North American in 2011, there were high hopes that the Italian car make’s small yet stylish products would establish a healthy niche. Although the distinctive design of the Fiat 500 can still attract admiring stares, the brand has amounted to a very tiny share of the market with the 500x crossover being the only product available in recent years. The Fiat 500 subcompact’s reintroduction to the United States and Canada in 2024 as an entirely electric model line could allow this Stellantis brand to gain new relevance among motorists. What’s New for 2024:  The subcompact Fiat 500 returns to the United States and Canada for 2024 exclusively as a battery electric vehicle. Assembled within a tidy, elegant Italian-styled package, the 2024 Fiat 500e features a powertrain consisting of a 42-kWh battery pack as well as an electric motor generating 118 horsepower and 162 lb.-ft. of torque. With a ma