Toyota has confirmed it will invest up to $912 million across five of its US facilities to support the production and development of hybrid vehicles in North America. This sizable investment, the initial stage of a planned $10 billion USD investment by the Japanese marque into its US base before 2030, will also lead to a number of new jobs being created at Toyota, although, bizarrely, not as many of you might think.
Toyota’s latest sales report shows a sharp increase in hybrid and electrified vehicle demand.
Earlier this month, and after the call was made to “go out and buy a Toyota,” the Japanese marque confirmed that “up to $10 billion” USD would be invested into its US infrastructure over the next four years. This, incidentally, is on top of a new, $13.9 billion battery plant in North Carolina, production of which has now begun. The $912 million total marks the first step in that plan, with the investment set to be spread across five states in southern America.
Of the five, Toyota West Virginia gets the bulk of that expenditure – $453 million – which will be used to increase assembly of four-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles and rear motor stators. Toyota Kentucky is next up, with $204.4 million dedicated to the installation of a new machining line for four-cylinder hybrid powerplants, while Toyota Mississippi ($125 million) will oversee production of the hybrid-electric Corolla, marking the first time an electrified version of the staple model will be assembled in the US.
Toyota Tennessee ($71.4 million) and Toyota Missouri ($57.1 million) will look to increase production of new hybrid transaxle cases/engine blocks and cylinder heads by “nearly 500,000” and “more than 200,000” units, respectively. Most of the above investments are expected to be completed by 2027. This near $1 billion investment is set to create a very specific 252 new jobs, the majority of these, 82, will open in Kentucky, with 80 set to be available in West Virginia.
Revived FJ lands in Japan next year
Encouraging as this news is for hybrid Toyota fans in North America, this news will probably lead to a few mopped foreheads in Detroit as well. The Japanese marque, after all, is the second-largest seller of new vehicles in the US behind only General Motors, and, while demand for electric vehicles has dropped significantly – not aided by the US government’s U-turn on EV subsidies and customer rebates – Toyota’s hybrid models continue to sell strongly. Independent research by Motor Intelligence claims that, as of Q3 this year, the Japanese marque leads the US hybrid market with at least a 51% market share. All signs point strongly towards Toyota chipping away at GM’s US monopoly.
Ironically though, despite this massive new investment, and given the fallout from the US government’s unpredictable tariff roll-out, Toyota is planning to take a very conservative approach to its model line-up, with vehicle life-cycles set to be extended from seven to nine years. A Toyota spokesman even confirmed recently to HotCars’ sister publication CarBuzz that the brand’s older platforms are still “working well for us,” a potentially significant cost-saving measure.
Source: Toyota Motor America
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