Toyota pulling Corolla out of Ontario

[Topaz]

The Toyota corolla will be leaving Cambridge on in a few years and going to Mexico. Toyota is also investing in China and hope to have everything under way by 2019. This is not surprising because I've heard both the former president of Mexico and the present Ambassador say that Mexico is going to be the auto sector of the world. they also said the US, China and Mexico will the world leading in manufacturing. So who do Canadians blame for this..... both provincial and federal, the corporations, or its just the way the world is today??? Thoughts? https://ca.news.yahoo.com/toyota-announces-plants-mexico-china-ending-pause-plants-130253231.html

[TimG]

So who do Canadians blame for this..... both provincial and federal, the corporations, or its just the way the world is today??? Thoughts?

It is largely the way the world is. Back in the days when the US market was the biggest the Ontario factories benefited. Now the northern location on the Atlantic puts Ontario at a huge disadvantage when automakers want to build plants that supply many countries. Mexico is in a much better position to supply the American (North and South) market. On top of that you have generous subsidies from the Mexican government and lower wages/high productivity.

That said, Japanese (and likely Koreans too) will not produce cars in a China for export to other countries. The political risk is too high. Cars produced in China will be sold in China.

[bush_cheney2004]

This is as expected...."Ontario is in a no Wynne situation".

[Shady]

This is as expected...."Ontario is in a no Wynne situation".

Exactly. Bad economic policies have consequences. Just wait until her absurd cap n trade goes into place. Maybe she'll fund a manufacturing museum in Ontario so we all remember what it was like 10 years from now.

[overthere]

On top of that you have generous subsidies from the Mexican government and lower wages/high productivity.

Wynne will be calling for penalizing tariffs on the import of Mexican Corollas to Ontario.

Just wondering -how is that cap and trade system going to work when you have no industry left in the province to cap or trade?

[Mighty AC]

Toyota isn't pulling out of Ontario it is simply consolidating Corolla production. In the west they currently produce the Corolla in two separate US plants and one in Cambridge, ON. In 2019, the Corolla will be produced in just Mexico and Mississippi. Toyota has made recent investments in both Ontario assembly plants (Cambridge, Woodstock) along with Toyota owned parts plants in the area. It is expected that the Cambridge plant, which also produces a Lexus model will become an all Lexus plant in 2019.

Edited April 15, 2015 by Mighty AC

[bush_cheney2004]

And of course, we all know that Toyota has built and sold far more Lexus models than the 3,000,000 Corollas built in Canada.

This is truly a great day for Ontario and the Wynne Way !

[bush_cheney2004]

Wynne will be calling for penalizing tariffs on the import of Mexican Corollas to Ontario.

Good luck with that...Canada is only 8% of North America's population and it is too expensive to stay in Ontariowe. Mexico is a no brainer for auto production given present conditions.

Let's add Toyota to the long list of companies that angry Canadians will boycott forever just to teach them foreigners a lesson !

[GostHacked]

A friend of mine recently bought a Cadillac. I said, 'Ah the car made in China.' His voice expressed surprise. You know Cadillac, the American car built in China.

[guyser]

Let's add Toyota to the long list of companies that angry Canadians will boycott forever just to teach them foreigners a lesson !

"cept that doesnt happen.

Know what does? Idiotic Americans who stupidly spout Buy American and havent got two brain cells to rub together to figure out Toyota Nissan and Honda make them in America.

Them foreigners are too stupid to learn.

[Mighty AC]

And of course, we all know that Toyota has built and sold far more Lexus models than the 3,000,000 Corollas built in Canada.

This is truly a great day for Ontario and the Wynne Way !

Two assembly plants and several parts plants are still receiving ongoing investment. Production from the Ontario plants is top 5 of global Toyota production; things are just fine. Corolla demand currently exceeds comfortable plant capacity. Toyota has juggled models in the Cambridge plants to suit demand a couple of times in the past and this move is no different.

[bush_cheney2004]

; things are just fine.

Things sure are fine....economic conditions are "juggling" manufacturing sites and strategies for all major automotive manufacturers. Hell, I bet that if Canada even had a major domestic car manufacturer (it doesn't), they would move to Mexico or China too!

Just shut it all down in Ontario....it's all over except the CAW/Unifor screaming and shouting.

Welcome to "North America"....that includes Mexico.

[Mighty AC]

Current economic policies don't favour production in the US either.

[bush_cheney2004]

Current economic policies don't favour production in the US either.

Auto manufacturers have recently invested more in the U.S. than in Canada.

Just shutter Ontario and it will come crawling back with huge incentives and tax subsidies just like everyone else.

Welcome back to "North America".

[Mighty AC]

Mexico landed $30 billion in new production investments over the last 15 years with $3.4 billion last year alone. Most of that production has moved from the US. Once manufacturing companies create infrastructure in the third world they tend to keep expanding there. It's all part of the capitalist race to the bottom. Free trade between nations with unequal environmental, health and human rights laws just doesn't make sense.

Edited April 15, 2015 by Mighty AC

[bush_cheney2004]

Mexico landed $30 billion in new production investments over the last 15 years with $3.4 billion last year alone. Most of that production has moved from the US. Once manufacturing companies create infrastructure in the third world they tend to keep expanding there. It's all part of the capitalist race to the bottom. Free trade between nations with unequal environmental, health and human rights laws just doesn't make sense.

Sounds fine to me.....I helped to moved millions in automotive flex circuit manufacturing to China and Mexico back in the 1990's.

Nothing special about Canada or the U.S. in that regard... Kapton polyimide flex circuits don't give a damn where they are made.

[On Guard for Thee]

Sounds fine to me.....I helped to moved millions in automotive flex circuit manufacturing to China and Mexico back in the 1990's.

Nothing special about Canada or the U.S. in that regard... Kapton polyimide flex circuits don't give a damn where they are made.

Your kidding, they stil put Kapton in anything...burn baby burn.

[TimG]

It's all part of the capitalist race to the bottom. Free trade between nations with unequal environmental, health and human rights laws just doesn't make sense.

So you would rather keep poor nations poor by denying them access to rich world markets? You never struck me as a person who thinks that rich should keep getting richer while the poor stay poor. Edited April 15, 2015 by TimG

[Mighty AC]

So you would rather keep poor nations poor by denying them access to rich world markets? You never struck me as a person who thinks that rich should keep getting richer while the poor stay poor.

I would rather see worker safety standards and environmental regulations be a requirement of free trade. Companies failing to meet set standards should be hit with tariffs when exporting their goods. We need to dispense with the ludicrous idea that people and the planet are expendable in the pursuit of profits.

Edited April 16, 2015 by Mighty AC

[bush_cheney2004]

..... We need to dispense with the ludicrous idea that people and the planet are expendable in the pursuit of profits.

Why ? How else are "we" going to pay for the modern social welfare state ?

[Mighty AC]

Stop eroding jobs, benefits and wages and the need for social programs shrinks.

[On Guard for Thee]

Toyota is just building the high end stuff in Cambridge now.

[bush_cheney2004]

Stop eroding jobs, benefits and wages and the need for social programs shrinks.

Logically then, raise all benefits and wages ten fold....one hundred fold. Everybody can buy a Lexus !

[On Guard for Thee]

Logically then, raise all benefits and wages ten fold....one hundred fold. Everybody can buy a Lexus !

A man who earlier built cars had a similar idea. I seem to recall his name was something like...Henry Ford. Of course the rednecks of the world probably dont accept that his theory worked at all.

[Mighty AC]

Logically then, raise all benefits and wages ten fold....one hundred fold. Everybody can buy a Lexus !

Funny. Keep transferring wealth from the middle to the top and see social need swell, health decline, education decline, crime and violence increase and worse (for a Republican) few people will have the disposable income to buy products.