Toyota to Hike Output of Lexus SUVs in Canada

Toyota Motor Co. says it will invest more than C$100 million (US$98 million) to boost Lexus RX SUV capacity at its Cambridge, Ont., factory.

The expansion will add about 400 workers and increase the plant's annual output by 30,000 units to 104,000 vehicles by early 2014. The increase is equal to the volume of production that will move to Cambridge from Toyota's plant in Kyushu, Japan. Half the expanded capacity will be devoted to the RX450h hybrid version of the SUV, which is not currently built in Cambridge. The facility also makes the Corolla compact car.

When the expansion is complete, the company for the first time will build the majority of Lexus vehicles outside Japan. Total capacity at Toyota's two Canadian assembly plants will reach 500,000 units.

The Cambridge investment is part of the company's pledge last year to hike productivity and output of more fuel-efficient vehicles in Canada in exchange for US$140 million provided by the governments of Canada and Ontario. Under that program, Toyota also committed in March to a $79 million expansion of its Woodstock, Ont., factory to boost output next year of the RAV4 compact crossover vehicle, including an electric version.