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Toyota to Produce Hybrid-Only RAV4s at Ontario Plants by 2026

The automaker's shift aligns with growing hybrid demand and a strategy to address U.S. tariffs without affecting Canadian plant jobs.

The Toyota Motor Manufacturing plant in Woodstock. Photo taken on Tuesday, March 4, 2025. (Derek Ruttan/The London Free Press)

Overview

  • Toyota's Southwestern Ontario plants in Woodstock and Cambridge will transition to hybrid-only RAV4 production starting early 2026.
  • The move comes as hybrids gain popularity, with 44% of RAV4 sales in 2024 being hybrid models, reflecting strong consumer demand.
  • The production shift will not impact staffing, with all 8,500 workers at the plants retaining their positions.
  • Toyota's 'continental' sales strategy, treating North America as a single market, helps mitigate the impact of U.S. tariffs on Canadian-made vehicles.
  • The company is ramping up battery production at its North Carolina plant to support the hybrid transition.