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Toyota Announces Extra $3 Billion Investment in US Manufacturing

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Toyota Manufacturing Employee Working on an Engine
Photo: Toyota

In 2017, Toyota declared it would invest $10 billion over five years in United States manufacturing, but today has announced it will actually exceed that pledge by nearly $3 billion.

Part of that added commitment comes from a fresh announcement that the automaker will invest $750 million in five different states. It is expanding its engine capacity in Alabama, adding Toyota RAV4 Hybrid and Lexus ES 300h hybrid vehicle production to Kentucky, expanding its buildings to accommodate additional castings in Missouri and Tennessee, and doubling its hybrid transaxle capacity in West Virginia.

Along with the $750 million investment, Toyota will hire 568 new workers across those five states, and by the end of 2021, 450 new jobs will have been created at the Huntsville, Alabama facility to accommodate the increased engine capacity.


Related: 2019 Toyota RAV4 details

“These latest investments represent even more examples of our long-term commitment to build where we sell,” said Jim Lentz, chief executive officer for Toyota Motor North America. “By boosting our U.S. manufacturing footprint, we can better serve our customers and dealers and position our manufacturing plants for future success with more domestic capacity.”

The announcement comes shortly before President Trump is expected to make a decision on whether to place additional tariffs on trade on the so-called basis of national security. Lentz says he is still keeping its “eye on trade” as Toyota awaits the president’s decision, but added that the primary driver of new investments was the “insatiable appetite” that consumers have for light trucks such as the new RAV4 Hybrid.


Related: Why buy a Toyota hybrid?