UPDATE 2-Canada, Ontario invest to re-tool Toyota Lexus plant

Wed Jan 23, 2013 5:17pm EST
 
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* Funds to top up Toyota expansion announced last July

* Lexus hybrid will be first hybrid built in Canada

* Expanded output, hybrid manufacture set for 2014

* Ottawa funds to come from Automotive Innovation Fund

Jan 23 (Reuters) - The Canadian and Ontario governments will invest up to C$34 million ($34 million) to help re-tool a Toyota Motor Corp plant in Cambridge, Ontario, to help it expand output and produce a hybrid version of the Lexus sport utility vehicle.

It will be the first hybrid to be built in Canada, Prime Minister Stephen Harper said in announcing the investment at the southern Ontario plant on Wednesday, along with Ontario Premier Dalton McGuinty.

The federal and provincial governments will each provide up to C$16.9 million.

"Our government is committed to helping Canada's automotive sector remain globally competitive and prosperous," Harper said.

Toyota announced last July that it will invest more than C$100 million to expand Lexus production in Canada. The government funds will add to this investment.   Continued...