Toyota Has No Plans to Move Production Out of Canada
If U.S. President Donald Trump's goal with his new tariffs is to force automakers and their suppliers to produce more vehicles and parts in the U.S., it's not happening with Toyota in Canada.
The Japanese automaker, which operates three major plants in Ontario, has no intention of moving part of its production south of the border.
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Speaking about the new, sixth-generation 2026 Toyota RAV4 that will roll out of Cambridge and Woodstock by the end of this year, Toyota Motor Manufacturing Canada's Director of Corporate and External Affairs, Scott MacKenzie, told Automotive News that “these are typically six-, even seven-year investments. When you’re investing in a new model, we can’t get involved in short-term thinking, and honestly, we see tariffs … as something that’s not sustainable.”
Production in Ontario will be maintained, and so will the workforce—despite the increased costs that Toyota Canada has to absorb since the U.S. tariffs on foreign-made vehicles came into effect in April.
It must be said that all of the company’s North American plants are running close to full capacity right now, which leaves very few options in the short term, MacKenzie explained. Plant expansions or brand new facilities would be required, which could take several years.
If other automakers are moving production or considering it, it's not in Toyota's plans, he insisted, adding that “saner heads will prevail” when it comes to tariffs.
By the way, unlike previous RAV4s, the new one—exclusively available with hybrid technology—will rely on batteries manufactured locally rather than imported from Japan. Work on battery lines has just begun in both Cambridge and Woodstock. Modules will be sourced from a plant in North Carolina, then assembled to make the final batteries in Ontario.
MacKenzie said that the outgoing 2025 RAV4 will continue to be produced while both plants prepare for its successor. In the worst-case scenario, they will probably be down less than ten days.
