WOODSTOCK — The first Toyota electric vehicle to be built outside of Japan could roll off the production line in Woodstock sometime in 2012.
Toyota executives joined with provincial and federal officials on Friday to make the official announcement to build the RAV4 EV electric vehicle at the Toyota Motor Manufacturing Canada Inc. plant in Woodstock.
It will be a full plug-in electric SUV, not a hybrid, powered by the electric powertrain components supplied by partner Tesla Motors Inc. in Palo Alto, Calif.
Telsa, a maker of Roadster sports cars, recently signed a $100-million three-year agreement to supply Toyota with the equipment.
Toyota is expecting the RAV4 electric vehicle will go at least 160 kilometres on a single charge. But the company has not yet revealed what this vehicle would cost consumers or any specifics in terms of the number electric vehicles to be produced or how many jobs it will generate.
At first, it will be produced on the existing RAV4 line, in “limited” numbers. But if there is market acceptance and demand grows, Toyota will meet that demand, said Brian Krinock, president of Toyota Motor Manufacturing Canada.
The investment in the electric vehicle is one part of the more than $500 million worth of investments that Toyota is making at the plants in Cambridge and Woodstock, including contributions of a repayable loan of $70.84 million from the federal government and a grant of up to $70.8 million from the province.
Toyota officials said the company, which is celebrating its 25th year of production in this region, is now positioning itself for the long-term electric car future. That will help to secure the 6,500 jobs at the plants in Cambridge and Woodstock, they said.
“We are not disclosing the number of jobs, but what we are doing is ensuring the future success of the automotive sector in Canada,” Krinock said.
The Woodstock plant is currently functioning at only 25 per cent of capacity because of supply chain problems that followed the earthquake and tsunami in Japan, but the company expects it to be back at full production in September.
Ray Tanguay, chair of Toyota Motor Manufacturing Canada, said since the Woodstock plant is producing the gasoline-powered RAV4, it is natural to produce the electric version there.
The company wants to make sure the vehicle is “of the highest quality,” Tanguay said. “If it were built in a separate assembly plant that has no experience with building the RAV, I think it would be much higher risk, so this just makes good common sense.”
The recent federal and provincial government financial support also helped to attract the Toyota investment, he added.
Federal Industry Minister Christian Paradis said although the initial production will be limited, this will advance the innovation in electric vehicles.
The federal and provincial governments will each provide Toyota with $70.8 million for its Green Light Project, an environmental and efficiency upgrade for its two Southwestern Ontario plants, meaning government funding will exceed $140 million for the manufacturing giant.
McGuinty said the goal is to have one in 20 vehicles on the road electric-powered by 2020.
The goal met with some skepticism from reporters because of the financial burden involved with buying renewable technology-based vehicles.
But McGuinty said the province must be a leader, that technology will become better, and more affordable.
“We’re going to get there. We’re going to find a way to get there. It takes eight minutes for the sun’s ray to hit the earth. Today we will receive enough sunlight to power the planet for a year. We’re going to get there,” he said.
The price of the new RAV4 EV isn’t yet known. But the province is offering incentives to buyers willing to try out the new technology. Between $5,000 and $8,500 will be knocked off the price of electric vehicles bought or leased after July 1, 2010.
Toyota officials said the investment in the project will help protect the 6,500 existing jobs at Toyota’s Cambridge and Woodstock plants, and thousands of supplier jobs throughout Ontario.
Production at the plant is expected to resume to full levels in September. Since a tsunami and earthquake hit Japan, production has been cut back to one shift, three days a week.

