BUFFALO, W.Va.—Toyota Motor Corp. on March 14 announced it is investing an additional $750 million at five U.S. plants that will bring nearly 600 new jobs, including the production of two hybrid vehicles for the first time at its Kentucky facility.
It marks yet another expansion of the Japanese automaker’s U.S. presence, bringing to nearly $13 billion the amount it will spend by 2021.
The latest investments are at facilities in Alabama, Kentucky, Missouri, Tennessee, and West Virginia. Those same facilities were part of a 2017 announcement by Toyota for a $374 million investment to support the production of its first American-made hybrid powertrain.
— Donald J. Trump (@realDonaldTrump) March 14, 2019
Toyota Motor North America executive Chris Reynolds said the investments represent yet more examples of the company’s long-term commitment to build where it sells, irrespective of trade uncertainty due to tariffs.
“Our overarching manufacturing principle is if we can sell it here we need to make it here. That’s been true before any tariff uncertainty, it’s true during tariff uncertainty and it will be true after. Our investment cycles go beyond any particular political cycle,” he said during a conference call with reporters.
Toyota Motor North America CEO Jim Lentz said, “In a time when others are scaling back, we believe in the strength of America, and we’re excited about the future of mobility here in America.”
The automaker is spreading additional investments among several plants.
We’re revving up our U.S. investment to $13 billion over five years and adding nearly 600 new American jobs. Check out what’s happening at our plants across five states! https://t.co/cAhmnVXgAv pic.twitter.com/0lcVU7iXQC
— Toyota USA (@Toyota) March 14, 2019
Toyota’s Georgetown, Kentucky, facility will get a $238 million infusion to produce hybrid versions of Lexus ES 300 sedans starting in May and the RAV4 SUV starting in January 2020, the company announced.
The RAV4 production doesn’t signal a shift away from sedan production at the sprawling Kentucky plant, Toyota executives said. Instead, it reflects Toyota’s plan to build multiple vehicles at its plants to better insulate each facility from downturns in market cycles.
“Unlike some of our competitors, we think there’s value in the sedan market, while it may not be as big as it was,” Reynolds said.
The announcement also includes $288 million to increase annual engine capacity at Toyota’s Huntsville, Alabama, facility. The plant will add 450 jobs to accommodate new four-cylinder and V6 engine production lines. Last year Toyota and Mazda announced plans to build a $1.6 billion joint-venture plant in Huntsville that will eventually employ about 4,000 people.
Toyota also is spending $62 million on equipment to boost production of Toyota and Lexus cylinder heads at its Bodine Aluminum facility in Troy, Missouri, as part of its cost-saving New Global Architecture production strategy to share common parts and components among different vehicles.
TRUMP EFFECT: Toyota Announces $13 BILLION Investment In USA https://t.co/HbZNEO3bw3
— Big League Politics (@bigleaguepol) March 14, 2019
A $50 million expansion and equipment upgrade at a Bodine plant in Jackson, Tennessee, will add 13 jobs and produce engine blocks while doubling the capacity of hybrid transaxle cases and housings.
And Toyota will add 123 jobs and spent $111 million to expand its plant and purchase equipment in Buffalo, West Virginia, to double the capacity of hybrid transaxles.
Previously, Toyota also announced a $600 million investment at its Princeton, Indiana, plant to increase the capacity of its Highlander SUV and to incorporate the new production strategy, and $170 million to launch the 2020 Corolla on a new production line in Blue Springs, Mississippi.
— Reuters Top News (@Reuters) March 14, 2019