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Toyota To Build RAV4s In Its Cambridge, Ontario Plant

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Old 11-10-15, 10:12 AM
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Sulu
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Default Toyota To Build RAV4s In Its Cambridge, Ontario Plant

Toyota To Build RAV4s In Its Cambridge, Ontario Plant

CAMBRIDGE, ON., November 10, 2015 – Toyota announced today that it will produce RAV4 vehicles in its Cambridge North Assembly plant starting in 2019. With Lexus RX in Cambridge, and Toyota RAV4 in Woodstock and Cambridge, Toyota Motor Manufacturing Canada (TMMC) will become a North American hub for sport utility vehicles. The company also announced that it will be adding hybrid RAV4 production.

“The RAV4 and the RAV4 hybrid are great products for TMMC,” commented Toyota Motor North America Chief Executive Officer Jim Lentz. “RAV4 is a leader in the fastest growing segment of the North American auto industry. We forecast that the segment will continue to demonstrate strong growth with the RAV4 being a major player.” Mr. Lentz also explained that “producing additional RAV4s, a more upscale, more complex, higher content vehicle, fits well with TMMC’s well-earned reputation for quality.”

To accommodate the change, the Cambridge North Plant will receive significant new investment, including the introduction of Toyota’s New Global Architecture (TNGA). TNGA is an innovative, integrated approach to developing and building vehicles, involving new production equipment and new processes. TMMC President, Brian Krinock explained that “with a new platform and the latest technology, TMMC will have the flexibility to respond to the evolving needs of the automotive marketplace.” He also said that “bringing TNGA to Canada will propel us to the next generation of automotive manufacturing and provide the basis for our longstanding commitment to employment stability.” Mr. Krinock also observed that “when we implement this project in 2019, we will have been making vehicles in Canada for thirty years. This investment will revitalize our plant and create the foundation for our future success.”

Toyota Motor Manufacturing Canada Inc. manufactures the Toyota Corolla, RAV4, Lexus RX 350 and RX 450h vehicles and is the first plant outside of Japan to build a Lexus vehicle. The company employs more than 8,000 Team Members at three manufacturing plants in Ontario, Canada.
Source: Newsroom | Toyota Canada

So now we know what will replace the Corolla at the Cambridge North plant when Corolla production is moved to Mexico for the next generation. And the next-gen RAV4 will be (no surprise) on the TNGA platform, and built in 2 plants -- Cambridge North (original TMMC) and Woodstock (newest TMMC line).

Building so many RAV4s in Canada and building only crossover utility vehicles in Canada... That begs the question: Is the RAV4 (or a variant) going to replace the Venza?

There was some hope (if dim) that the new Lexus 3-row TX would replace the Corolla in Cambridge...
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Old 11-10-15, 02:03 PM
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Originally Posted by Sulu
Source: Newsroom | Toyota Canada

So now we know what will replace the Corolla at the Cambridge North plant when Corolla production is moved to Mexico for the next generation. And the next-gen RAV4 will be (no surprise) on the TNGA platform, and built in 2 plants -- Cambridge North (original TMMC) and Woodstock (newest TMMC line).

Building so many RAV4s in Canada and building only crossover utility vehicles in Canada... That begs the question: Is the RAV4 (or a variant) going to replace the Venza?

There was some hope (if dim) that the new Lexus 3-row TX would replace the Corolla in Cambridge...
I wonder if NX production in Canada is in the future?
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Old 11-10-15, 03:51 PM
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Originally Posted by Sulu
Source: Newsroom | Toyota Canada

So now we know what will replace the Corolla at the Cambridge North plant when Corolla production is moved to Mexico for the next generation. And the next-gen RAV4 will be (no surprise) on the TNGA platform, and built in 2 plants -- Cambridge North (original TMMC) and Woodstock (newest TMMC line).

Building so many RAV4s in Canada and building only crossover utility vehicles in Canada... That begs the question: Is the RAV4 (or a variant) going to replace the Venza?

There was some hope (if dim) that the new Lexus 3-row TX would replace the Corolla in Cambridge...
They can only produce half of Rav4's currently in NA, half of them are imported from Japan.... so this was expected news really, and it will almost double the production of Rav4 in NA.
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Old 11-10-15, 03:55 PM
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Lexus really needs to build NX in there.
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Old 11-10-15, 03:57 PM
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Originally Posted by LexBob2
I wonder if NX production in Canada is in the future?
That is pretty much a foregone conclusion.
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Old 11-10-15, 05:25 PM
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Agreed. If they can produce RAV-4s there, I don't see why they can't produce NXs, either. A lot, of course, will depend on the amount of buyer-demand for both vehicles. Demand is currently high for both vehicles, but the RAV-4 still is (likely) to outsell the NX. In my area, (D.C. suburbs), the RAV-4 sales, like the Honda CR-V, are like free beer at Clancy's Bar.
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Old 11-10-15, 06:05 PM
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Originally Posted by mmarshall
Agreed. If they can produce RAV-4s there, I don't see why they can't produce NXs, either. A lot, of course, will depend on the amount of buyer-demand for both vehicles. Demand is currently high for both vehicles, but the RAV-4 still is (likely) to outsell the NX. In my area, (D.C. suburbs), the RAV-4 sales, like the Honda CR-V, are like free beer at Clancy's Bar.
Combined both sell around 250k units I would assume. The NX would be extremely profitable of made in Canada. I wonder what is going into the old Rav4 plant.
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Old 11-11-15, 12:16 AM
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Originally Posted by LexsCTJill
Combined both sell around 250k units I would assume. The NX would be extremely profitable of made in Canada. I wonder what is going into the old Rav4 plant.
old rav4 plant is continuing, they are just doubling the output in nearby plant, that used to build Corolla, which moved south.

I doubt they will build NX, since it is not that price sensitive and is much smaller volume. I think NA production will stay with ES and RX as it is currently - thats almost half of Lexus sales in the USA.

Also - combined NX and Rav4 will likely sell more than 400k in NA... 350k of which will be for Rav4. Thats significant local production.

Last edited by spwolf; 11-11-15 at 12:19 AM.
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Old 11-11-15, 03:17 AM
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Sales of compact crossovers such as the RAV4 are expected to surpass those of mid-size cars in North America over all, and the RAV4 is likely to surpass the mid-size Camry in Toyota’s U.S. sales, Mr. Krinock said.

The RAV4 is now the second bestselling vehicle in Toyota’s lineup in both the Canadian and U.S. markets. Sales in the first 10 months of the year grew 15 per cent in both countries.
Toyota is predicting that Rav4 sales will overtake Camry, hence this additional local production. Investment is $500 million.



http://www.theglobeandmail.com/repor...ticle27186145/
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Old 11-11-15, 06:34 AM
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Originally Posted by spwolf
Toyota is predicting that Rav4 sales will overtake Camry, hence this additional local production. Investment is $500 million.
wow, that's pretty incredible, even though the writing has been on a wall for sedans for a while - the 'practical' family sedan is now less preferred to the 'even more practical' small ute.
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Old 11-11-15, 09:17 AM
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I just looked at U.S. sales thru October and the gap between Camry and Rav4 sales was closer than I thought it would be.

361k (-1.9%) Camry
256k (+15%) Rav4
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Old 11-11-15, 01:39 PM
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Originally Posted by LexBob2
I just looked at U.S. sales thru October and the gap between Camry and Rav4 sales was closer than I thought it would be.

361k (-1.9%) Camry
256k (+15%) Rav4
especially since they dont have enough capacity right now and have to import half of Rav4 sold here... with increase of capacity and new models like hybrid, they are setting the stage for this to happen within next 3 years, when next Rav4 is introduced.
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Old 11-11-15, 02:20 PM
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Originally Posted by spwolf
especially since they dont have enough capacity right now and have to import half of Rav4 sold here... with increase of capacity and new models like hybrid, they are setting the stage for this to happen within next 3 years, when next Rav4 is introduced.
For a while now, the Q5 has been Audi's best selling vehicle after pulling ahead of the A4.
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Old 11-11-15, 08:03 PM
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Originally Posted by bitkahuna
wow, that's pretty incredible, even though the writing has been on a wall for sedans for a while - the 'practical' family sedan is now less preferred to the 'even more practical' small ute.

Americans have always liked station wagons and now they are returning to it.

I wonder if the next generation of the RAV4 will be even more car-like. While the RAV4 retains its small SUV look, a number of its current competitors (Honda CR-V, Ford Escape come to mind) are starting to be more and more station wagon-like.

I would seriously consider the RAV4 (Hybrid) if the next generation model offers a larger (wider) rear seat so that it becomes much more comfortable for 5 passengers; the current rear seat is just too narrow.
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Old 11-11-15, 09:11 PM
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Originally Posted by Sulu
Americans have always liked station wagons and now they are returning to it.

I wonder if the next generation of the RAV4 will be even more car-like. While the RAV4 retains its small SUV look, a number of its current competitors (Honda CR-V, Ford Escape come to mind) are starting to be more and more station wagon-like.

I would seriously consider the RAV4 (Hybrid) if the next generation model offers a larger (wider) rear seat so that it becomes much more comfortable for 5 passengers; the current rear seat is just too narrow.
people want SUVs, not station wagons... thats why Rav4 sells more and more.
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