Toyota goes all-in on hybrids in Woodstock, Cambridge crops, shrugs off U.S. tariffs

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Toyota Canada might be making a brand new car at its Southwestern Ontario crops, however with a really acquainted look.

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The RAV4 automobiles now assembled at Canada’s largest automotive producer in Woodstock and Cambridge might be hybrid-only starting early in 2026, the automaker introduced.

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It now assembles each gasoline-powered and hybrid RAV4s in addition to Lexus automobiles, and this implies the top of gas-powered RAV4s on the producer.

“Hybrid makes plenty of sense for Toyota now,” stated Brendan Sweeney, director of the Trillium Community for Superior Manufacturing, an business advocacy group.

“This has been within the works for a number of years and it’s a pure factor to occur. It’s a really constructive transfer.”

The change is not going to impression staffing. The corporate’s 8,500 staff at each Southwestern Ontario websites will stay on the job, officers with Toyota Motor Manufacturing Corp. stated in a press release.

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The crops assembled greater than 530,000 automobiles final yr. 

Toyota has two crops in Cambridge, one assembling the RAV4 and Lexus NX, a sport utility car. The second plant within the metropolis assembles the Lexus 350, each fuel and hybrid variations, in addition to the Lexus 500 hybrid SUV. The RAV4, each fuel and hybrid automobiles, are assembled in Woodstock.

The change in manufacturing comes at a time when many anticipated Toyota might gradual manufacturing as its automobiles face tariffs on gross sales into the U.S. and the Ontario crops ship a lot of its manufacturing south of the border.

However Toyota has a “continental” strategy to car gross sales the place it considers gross sales of all U.S., Canada and Mexico manufacturing and never only one territory, Sweeney stated.

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“They’re impacted by tariffs, everyone seems to be, however they promote plenty of RAV4s in Canada,” Sweeney stated.

“They strategy North America as one market. On this promote it has to fulfill buyer demand throughout totally different segments. They add up income and subtract prices and it’s constructive for them.”

A report in March from the information company Reuters helps this concept, stating Toyota is not going to increase costs on automobiles from Japan, Canada or Mexico offered within the U.S. on account of President Donald Trump’s tariffs.

“There’s no panic at Toyota. They’re not trying simply at quarterly returns and shareholder worth as American firms do. If there’s a success to income it’s going to undergo that for a broader, long-term technique,” Sweeney stated.

There’s additionally a price to shutdowns, layoffs, startups and recollects automakers wish to keep away from, he stated.

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As well as there may be rising optimism Canada, Mexico and the U.S. will hammer out a brand new commerce deal by yr’s finish, though the present one doesn’t expire till 2026, Sweeney stated.

Now, about half of Toyota’s U.S. gross sales are imported from exterior of the U.S. together with 84 per cent of RAV4 fashions.

“Our automobiles are in excessive demand, and (Toyota) is continuous to construct to plan. We’ll stay busy producing the top-selling car in North America,” Toyota spokesperson Michael Bouliane wrote in an e mail response to questions from The Free Press.

Toyota first started manufacturing in Cambridge in 1988 and in 1997 opened its second plant within the metropolis. In 2009, it opened its Woodstock plant.

Sweeney believes Toyota is “ramping up” manufacturing at its battery plant in North Carolina to provide its crops.

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“That can result in some provide chain efficiencies and value efficiencies,” he stated.

In 2024, RAV4 gross sales elevated 9.3 per cent to greater than 475,000 automobiles and 44 per cent have been hybrids and 6.5 per cent have been plug-in hybrids, in line with a report from CNBC.

“The hybrid is quicker turning; it has extra gross sales orders on it, and the customers and sellers are asking for it. It was fairly clear that the buyer is voting for the hybrid,” David Christ, head of the Toyota model in North America, stated in a press release.

Seven of Toyota’s present automobiles are completely hybrid fashions, together with the Camry and Prius automobiles, Sienna minivan and Sequoia SUV. RAV4 would be the eighth. 

ndebono@postmedia.com

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