ontario Premier Dalton McGuinty and PM Stephen Harper visit the Toyota plant in Cambridge, Ontario.

Speaking at the Toyota plant in Cambridge, Ontario, Prime Minister Stephen Harper announced a $34 million dollar investment for the factory.

$16.9 million of the money will come from the Automotive Innovation Fund (AIF) – a $250 five-year program with a mandate to improve Canada’s automotive sector through research and development products. The balance of the money will come from the Province of Ontario’s Strategic Jobs and Investment Fund.

Our Government is committed to helping Canadas automotive sector remain globally competitive and prosperous, the Prime Minister said in a statement.

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Todays support will allow Toyota Motor Manufacturing Canada to produce a hybrid version of the Lexus Sport Utility Vehicle in Cambridge, the first hybrid model ever built in Canada. This milestone initiative to build greener more fuel efficient cars will advance Canadian innovation and increase our ability to compete internationally resulting in more high-paying, stable jobs.”

The Canadian Auto Workers unio also praised the deal with President Ken Lewenza saying in a statement, “Both the federal and provincial government recognize the importance of investing in local industry and local jobs.

It is crucial though that these investments be part of a larger automotive industrial policy that supports strategic investment, research and development, maintaining a Canadian footprint and greening the industry.

It’s expected the project will generate around 400 jobs at the Cambridge facility. A new blended assembly line will be established, allowing for increased production of the Lexus RX 450h hybrid.

Production is slated to begin in 2014.

—With files from The Canadian Press

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