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."