Toyota Motor Corp. will increase production of Lexus RX sports-utility vehicles at one of its Canadian plants to counter the effects of a rising yen.
The company, Asia’s largest automaker, plans to invest C$100 million ($98 million) and add about 400 jobs at its Cambridge, Ontario, plant, according to a statement today. RX capacity will rise by 30,000 vehicles annually to 104,000 by 2014, the Toyota City, Japan-based automaker said.
Toyota is headed for record vehicle production in North America this year. Japanese automakers are moving more work from Japan to North America because of the strong yen. The Japanese currency has gained about 8.9 percent in the past three months against nine developed-nation peers tracked by Bloomberg Correlation Weighted Indexes, the biggest increase in the group.
In March, Toyota announced plans to invest C$80 million to boost its RAV4 capacity by one-third at the Woodstock, Ontario, facility. The factory’s RAV4 capacity will be raised to 200,000 annually in early 2013 from 150,000, Toyota said at the time.