Ontario surpassed Michigan in car production, assembling 2.696 million vehicles in 2004. Ontario has Chrysler plants in Windsor, Ontario and Bramalea, two General Motors plants in Oshawa and one in Ingersoll, a Honda assembly plant in Alliston, Ford plants in Oakville and St. Thomas and Toyota assembly plants in Cambridge and Woodstock. However, as a result of steeply declining sales, in 2005, General Motors announced massive layoffs at production facilities across North America including two large GM plants in Oshawa and a Powertrain facility in St. Catharines resulting in 8,000 job losses in Ontario alone. In 2006, Ford Motor Company announced between 25,000 and 30,000 layoffs phased until 2012; Ontario was spared the worst, but job losses were announced for the St. Thomas, Ontario facility and the Windsor Casting plant. However, these losses will be offset by Fords recent announcement of a hybrid vehicle facility slated to begin production in 2007 at its Oakville, Ontario plant and GMs re-introduction of the Chevrolet Camaro which will be produced in Oshawa. On December 4, 2008 Toyota announced the grand opening of the Toyota RAV4 plant in Woodstock, Ontario, and Honda also has plans to add an engine plant at its facility in Alliston. Despite these new plants coming online, Ontario has not yet fully recovered following massive layoffs caused by the Financial crisis of 20072010; its unemployment rate was 7.3% in May 2013, compared to 8.7 percent in January 2010 and approximately 6% in 2007. In September 2013, the Ontario government committed CAD$70.9 million to the Ford plant in Oakville, Ontario, while the federal government committed CAD$71.1mn, to secure 2,800 jobs. The province has lost 300,000 manufacturing jobs in the decade from 2003, and the Bank of Canada noted that "while the energy and mining industries have benefitted from these movements, the pressure on the manufacturing sector has intensified, since many firms in this sector were already dealing with growing competition from low-cost economies such as China."

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