Toyota Motor Corp. plans to spend about $1.1 billion upgrading two of its three Ontario assembly plants in order to build the next generation of the RAV4 crossover, with about C$200 million ($257 million) of that coming from two levels of government.
The Canadian and Ontario governments will each provide up to C$110 million ($85.6 million) toward the projects.
Prime Minister Justin Trudeau and Premier Kathleen Wynne made the funding announcement at the Toyota Motor Manufacturing Canada North Plant in Cambridge, Ontario, on Friday afternoon.
“It’s such good news, I’ll repeat it in French,” Trudeau said after announcing the federal contribution in English.
The investment and upgrades include production of a hybrid version of the RAV4 and spending on research and development in Ontario.
The upgrades, which include new automation technology in the paint and plastics departments, are to be completed by 2019. The investment will retain 8,000 jobs and create an additional 450 jobs and 1,000 co-op placements.