Posted on 07/03/2005 3:25:54 PM PDT by ItsJeff
WOODSTOCK, Ont. (CP) - Ontario workers are well-trained.
That simple explanation was cited as a main reason why Toyota turned its back on hundreds of millions of dollars in subsidies offered from several American states in favour of building a second Ontario plant.
Industry experts say Ontarians are easier and cheaper to train - helping make it more cost-efficient to train workers when the new Woodstock plant opens in 2008, 40 kilometres away from its skilled workforce in Cambridge.
"The level of the workforce in general is so high that the training program you need for people, even for people who have not worked in a Toyota plant before, is minimal compared to what you have to go through in the southeastern United States," said Gerry Fedchun, president of the Automotive Parts Manufacturers' Association, whose members will see increased business with the new plant.
Acknowledging it was the "worst-kept secret" throughout Ontario's automotive industry, Toyota confirmed months of speculation Thursday by announcing plans to build a 1,300-worker factory in the southwestern Ontario city.
"Welcome to Woodstock - that's something I've been waiting a long time to say," Ray Tanguay, president of Toyota Motor Manufacturing Canada, told hundreds gathered at a high school gymnasium.
The plant will produce the RAV-4, dubbed by some as a "mini sport-utility vehicle" that Toyota currently makes only in Japan. It plans to build 100,000 vehicles annually.
The factory will cost $800 million to build, with the federal and provincial governments kicking in $125 million of that to help cover research, training and infrastructure costs.
Several U.S. states were reportedly prepared to offer more than double that amount of subsidy. But Fedchun said much of that extra money would have been eaten away by higher training costs than are necessary for the Woodstock project.
He said Nissan and Honda have encountered difficulties getting new plants up to full production in recent years in Mississippi and Alabama due to an untrained - and often illiterate - workforce. In Alabama, trainers had to use "pictorials" to teach some illiterate workers how to use high-tech plant equipment.
"The educational level and the skill level of the people down there is so much lower than it is in Ontario," Fedchun said.
In addition to lower training costs, Canadian workers are also $4 to $5 cheaper to employ partly thanks to the taxpayer-funded health-care system in Canada, said federal Industry Minister David Emmerson.
"Most people don't think of our health-care system as being a competitive advantage," he said.
Tanguay said Toyota's decision on where to build its seventh North American plant was "not only about money."
"It's about being in the right place," he said, noting the company can rely on the expertise of experienced Cambridge workers to help get Woodstock up and running.
Premier Dalton McGuinty said the money the province and Ottawa are pledging for the project is well-spent. His government has committed $400 million, including the latest Toyota package, to the province's auto sector, which helped finance $5-billion worth of industry projects.
"I think that's a great investment that will more than pay for itself in terms of new jobs and new economic returns," McGuinty said.
The provincial funds for the auto sector were drawn from a fund set up to attract investments specifically in that industry. McGuinty said no similar industry funds are being planned for other sectors, but added the province wants to attract biotechnology companies - those working on multibillion-dollar advanced medical research.
"What we have done for auto we would like to be able to do for biotech," he said. "That's where we're lending some real focus to at the present time."
Similarly, Emmerson said Ottawa is looking to help out industries that create "clusters" of jobs around them - such as in aerospace, shipbuilding, telecommunications and forestry - where supply bases build around a large manufacturer.
© The Canadian Press, 2005
which Canada is heading down rather than the uncertain path which these two corrupt parties here in this country have chosen. At the rate that our federal government, our state governments, our local governments, as well as the American consumer is accumulating debt, who is to say who will own us in twenty years. My feeling is that the Japanese would rather invest capital in the certainty created by a conservative government and a conservative populace, but hey that ain't the US of A in the 21st century.
____________________________________________________________Oh my! You certainly need to read some Canadian news!
We have a government now called "Liberal" and what they have just revealed in the way of stealing taxpayers money, would make your hair curl! (if it's not already curly).
It's called ADSCAM -- look it up in google. You will be surprised.
What problems has Toyota run into in Kentucky that a new plant in Canada will not face? Answer that one. I certainly dont believe its illiteracy. As for Racism, The Japanese are noted for it.
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You are quite right. The existing Toyota plant located in Cambridge, Ontario, Canada has mostly young white males ages 19 - 40yrs. The number of black people or "non-white" is very minimal, they stick out like a sore thumb, so to speak.
I can see why liberal love Toronto so much.
I can see why liberal love Toronto so much.
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And gays. Don't forget, we just passed same-sex marriage law up here.
Question: I'm new here. How does one go about making a sentence in "italics"? I've tried [i] or (i) and it doesn't work!
1. I believe that should read "residents" instead of residence.
2. I have no problem with most Alabamans. I just feel that when southerners like to talk about how "super'er" they are to so-called "Yankees" (even though most of our families were not even living here when the War of Southern Treason occurred), they deserve to get it back. An eye for an eye, an insult for an insult.
We have aborted 40 million American workers since Roe v Wade and are trying to replace them with first generation immigrants who haven't had the benefit of our education system.
Glad to hear you say that, I caught a lot of crap abour racism over this post but no one ever disproved my original claim. I am pretty sure this is the reason.
Ontario was the more attractive site for the auto plant because of the endless supply of crash dummies.
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