Toyota started production of its redesigned RAV4 hybrid at Ontario plants last week, committing $1.1 billion to Canadian manufacturing amid tariff threats and trade uncertainty.
The Japanese automaker launched the sixth-generation RAV4 on January 23 at facilities in Woodstock and Cambridge employing 8,500 workers. This new investment brings its total Canadian spending to $12 billion over nearly four decades. The CBC reported that company officials confirmed no plans to reduce operations, though the automaker is not expanding employment.
The new RAV4 launches exclusively as a hybrid, with battery packs now assembled in Ontario rather than shipped from Japan. Toyota assembled 535,000 vehicles in Canada last year, making it the country’s largest auto manufacturer.
Liberal MP Kareem Bardeesy attended the production launch as the USMCA faces review this year. Ontario Economic Development Minister Victor Fedeli called the investment evidence of confidence in the province’s workforce despite mounting trade tensions with the US.
Trump threatened 100% tariffs on Canadian imports over potential China trade deals and raised duties on South Korean vehicles this week. The escalating threats place billions in cross-border auto investment at risk ahead of the USMCA review.
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