Toyota Increases Investment at U.S. Plants to $13B

Noria news wires
Tags: manufacturing

Toyota recently announced that it will exceed its 2017 pledge to invest $10 billion in its U.S. operations over five years with a new commitment to reach nearly $13 billion over the same period. Part of the commitment includes nearly $750 million in five different states, with more to come.

The new investments will consist of adding RAV4 Hybrid and Lexus ES 300h hybrid vehicle production to its manufacturing plant in Georgetown, Kentucky; expanding engine capacity at its facility in Huntsville, Alabama; doubling hybrid transaxle capacity at its plant in Buffalo, West Virginia; a building expansion for additional castings at the Bodine Aluminum’s facility in Jackson, Tennessee; and additional castings at its facility in Troy, Missouri.

“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.”

In Alabama, Toyota’s investment will increase annual engine capacity from 670,000 to 900,000 by the end of 2021. New four-cylinder and V-6 engine lines will add 450 new jobs to the facility in Huntsville, Alabama, the largest hiring need in the plant’s history. The investment also includes a building expansion. Overall, the plant represents an investment of $1.2 billion.

Toyota’s Kentucky vehicle plant will begin production of the Lexus ES 300h hybrid in May 2019, with annual capacity of 12,000 units. RAV4 Hybrid production will start January 2020, with an annual capacity of 100,000 units. The plant’s 8,000 team members also build the Camry, Camry Hybrid, Avalon, Avalon Hybrid and Lexus ES models with an annual capacity of 550,000 vehicles. Overall, the plant represents an investment of more than $7 billion.

Investments in Toyota’s Bodine Aluminum plant in Missouri will provide equipment to produce an additional 864,000 cylinder heads for Toyota’s New Global Architecture (TNGA). Bodine’s 900 Missouri team members currently produce more than 3 million cylinder heads a year, which are made for every Toyota and Lexus manufactured in North America. Overall, the plant represents an investment of $455 million.

The Tennessee investment includes a building expansion and equipment to double the capacity of hybrid transaxle cases and housings to 240,000 annually. The investment will also provide equipment to produce an additional 288,000 engine blocks a year for TNGA. The plant’s 300 team members currently produce 1.7 million engine blocks a year, which supply every Toyota and Lexus manufactured in North America, and 580,000 transmission cases and housings. Bodine will add 13 new jobs to its facility in Tennessee. Overall, the plant represents an investment of $365 million.

The West Virginia investment includes a building expansion and equipment to double capacity of hybrid transaxles from 120,000 units to 240,000 units annually in 2021. To meet the production demands, the plant will add 123 new jobs to its facility in Buffalo, West Virginia. Overall, the plant represents a $1.4 billion investment.

This latest investment builds on Toyota’s already expansive presence in the United States, which includes 10 manufacturing facilities. This past year, the company announced a joint venture with Mazda to build an additional U.S. plant. The $1.6 billion joint investment will create up to 4,000 new jobs in Huntsville, Alabama, with production slated for 2021.

Meanwhile, Toyota’s plant in Princeton, Indiana, is undergoing a $600 million transformation to incorporate TNGA and increase Highlander capacity by 40,000 units annually. With this, Toyota is adding 400-plus people to its team in Indiana.

In Blue Springs, Mississippi, Toyota is launching the new 2020 Corolla on the TNGA line, which included a $170 million investment and an increase of 400 jobs. Currently, Toyota employs more than 37,000 Americans.

For more information, visit www.toyota.com.

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