Toyota boosts hybrid vehicle and powertrain production with $750 million investment in North America

Toyota Motor North America to expand U.S. manufacturing operations

On March 15, 2019, Toyota Motor North America (TMNA), a regional subsidiary of Toyota Motor Corporation, announced a $750 million investment across five vehicle and powertrain plants in the United States.

This investment aims to increase local production of both vehicles and key hybrid components, while also creating approximately 600 new jobs.

Lexus ES and RAV4 hybrid production to begin

TMNA will begin manufacturing the Lexus ES hybrid sedan in May 2019 at Toyota Motor Manufacturing Kentucky (TMMK). Additionally, starting in January 2020, the company plans to produce the hybrid version of the RAV4—one of the best-selling SUVs in the U.S.—further enhancing its hybrid vehicle lineup in the region.

Increased capacity for hybrid transaxles and engines

Toyota Motor Manufacturing West Virginia (TMMWV), a powertrain plant, is set to boost its annual production capacity of hybrid transaxles to 240,000 units by 2021, up from 120,000 units. The initial phase of production will start with 120,000 units in 2020.

Meanwhile, Toyota Motor Manufacturing Alabama (TMMAL) will increase production capacity for four-cylinder and V6 engines by 230,000 units annually by 2021.

Total North American investment to reach $13 billion

In 2017, Toyota Motor announced a five-year, $10 billion investment plan for North America through 2021. This latest round of investment brings the total to $13 billion—an increase of 30% over the original plan. The company has also strengthened its North American operations in collaboration with Mazda since the 2017 announcement.