Toyota increases US investment commitment to $13bn
The Toyota motor company has announced that it will increase its commitment towards investing in increasing its manufacturing capabilities in the United States. Following the pledge to invest US$10bn over five years in 2017, Toyota on Thursday raised that figure to $13bn, which the company expects to spend by 2021.
Over the next two years, Toyota expects its investment to create around 600 new jobs at American plants.
Alongside its long-term commitment, Toyota also announced this week that it has spent almost $750mn across five US states, upgrading and expanding the capabilities of its operations. The new investments include adding the Toyota RAV4 Hybrid and Lexus ES 300h hybrid vehicle production to its Georgetown, Kentucky, manufacturing plant; expanding engine capacity at its Huntsville, Alabama, facility; doubling hybrid transaxle capacity at its plant in Buffalo, West Virginia; and a building expansion for additional castings at Bodine Aluminum's Jackson, Tennessee, facility as well as additional castings at its Troy, Missouri, facility.
Here’s a state-by-state breakdown of the spending:
Toyota Motor Manufacturing, Alabama (TMMAL) - $288mn
In Alabama, Toyota's investment will increase annual engine capacity from 670,000 to 900,000 by the end of 2021 to increase product flexibility and better accommodate market demand. New 4-cylinder and V6 engine lines will add 450 new jobs to its Huntsville, Alabama, facility, the largest hiring need in the plant's history. The investment also includes a building expansion. Overall, the plant represents an investment of $1.2bn.
Toyota Motor Manufacturing, Kentucky (TMMK) - $238mn
Toyota's Kentucky vehicle plant, the company's largest globally, will begin production of the Lexus ES 300h hybrid in May 2019 with annual capacity of 12,000 units while RAV4 Hybrid production will start January 2020 with an annual capacity of 100,000 units. TMMK's 8,000 team members also build 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 $7bn.
Bodine Aluminum Troy, Missouri - $62mn
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 $455mn.
Bodine Aluminum Jackson, Tennessee - $50mn
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 1.7mn 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 $365mn.
Toyota Motor Manufacturing, West Virginia (TMMWV) - $111mn
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, TMMWV will add 123 new jobs to its facility in Buffalo, West Virginia. Overall, the plant represents a $1.4bn investment.
"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."
Marketing matters: from IBM to Kyndryl
Prior to joining Kyndryl as Chief Marketing Officer, Maria had a 25-year career at IBM, most recently as the tech giant’s CMO where she oversaw all marketing professionals and activities across North America, Canada and Latin America. She has held senior global marketing positions in a variety of disciplines and business units across IBM, most notably strategic initiatives in Smarter Cities and Watson Customer Engagement, as well as leading teams in services, business analytics, and mobile and industry solutions. She is known for her work with teams to leverage data, analytics and cloud technologies to build deeper engagements with customers and partners.
With a passion for marketing, business and people, and a recognized expert in data-driven marketing and brand engagement, Maria talks to Business Chief about her new role, her leadership style and what success means to her.
You've recently moved from IBM to Kyndryl, joining as CMO. Tell us about this exciting new role?
I’m Chief Marketing Officer for Kyndryl, the independent company that will be created following the separation from IBM of its Managed Infrastructure Services business, expected to occur by the end of 2021. My role is to plan, develop, and execute Kyndryl's marketing and advertising initiatives. This includes building a company culture and brand identity on which we base our marketing and advertising strategy.
We have an amazing opportunity ahead at Kyndryl to create a company brand that will stand apart in the market by leading with our people first. Once we are an independent company, each Kyndryl employee will advance the vital systems that power human progress. Our people are devoted, restless, empathetic, and anticipatory – key qualities needed as we build on existing customer relationships and cultivate new ones. Our people are at the heart of this business and I am deeply hopeful and excited for our future.
What experiences have helped prepare you for this new opportunity?
I’ve had a very rich and diverse career history at IBM that has lasted 25+ years. I started out in sales but landed explored opportunities at IBM in different roles, business units, geographies, and functions. Marketing and business are my passions and I landed on Marketing because it allowed me to utilize both my left and right brain, bringing together art and science. In college, I was no tonly a business major, but an art major. I love marketing because I can leverage my extensive knowledge of business, while also being able to think openly and creatively.
The opportunities I was given during my time at IBM and my natural curiosity have led me to the path I’m on now and there’s no better next career step than a once-in-a-lifetime-opportunity to help launch a company. The core of my role at Kyndryl is to create a culture centered on our people and growing up in my career at IBM has allowed me to see first-hand how to prioritize people and ensure they are at the heart of progress in everything Kyndryl will do.
How would you describe your leadership style?
I believe that people aren't your greatest assets, they are your only assets. My platform and background for leadership has always been grounded in authenticity to who I am and centered on diversity and inclusion. I immigrated to the US from Chile when I was 10 years old and so I know the power and beauty that comes from leaning into what makes you different from other people, and that's what I want every person in my marketing organization to feel – the value in bringing their most authentic self to work every day. The way our employees feel when they show up for themselves authentically is how they will also show up for our customers, and strong relationships drive growth.
I think this is especially true in light of a world forever changed by the pandemic. Living through such an unprecedented time has reinforced that we are all humans. We can't lead or care for one another without empathy and I think leaders everywhere have been reminded of this.
What’s the best leadership advice you’ve received?
When I was growing up as an immigrant in North Carolina, I often wanted to be just like everyone else. But my mother always told me: Be unique, be memorable – you have an authentic view and experience of the world that no one else will ever have, so don't try to be anyone else but you.
What does success look like to you?
I think the concept of success is multi-faceted. From a career perspective, being in a job where you're respected and appreciated, and where you can see how your contributions are providing value by motivating your teams to be better – that's success! From a personal perspective, there is no greater accomplishment than investing in the next generation. I love mentoring younger professionals – they are the future. I want my legacy as a leader to include providing value in work culture, but also in leaving a personal impact on the lives of professionals who will carry the workforce forward. Finding a position in life with a job and company that offers me a chance at all of that is what success looks like to me.
What advice would you give to your younger self just starting out in the industry?
I've always been a naturally curious person and it's easy for me to over-commit to projects that pique my interest. I've learned over years of practice how to manage that, so to my younger self I’d say… prioritize the things that are most important, and then become amazing at those things.