Toyota is a revolutionary Japanese automaker with a strong commitment to fuel efficiency and electrification of its vehicles. To advance this commitment, they have recently announced a $383 million investment in four U.S. manufacturing plants that build engines for Toyota and Lexus models.
Lexus is a subsidiary of Toyota and their luxury vehicle division, which tops the list of Japan's largest-selling premium vehicle brands. Lexus is popularly known as a highly reliable luxury car brand with great resale value in the U.S.
These investments from Toyota will support the production of various engines like fuel-efficient four-cylinder combustion engines, including engines for their hybrid electric vehicles. The four U.S. manufacturing plants that get these investments include Toyota's Alabama, Missouri, Tennessee, and Kentucky plants.
Norm Bufanno is a senior VP at Toyota who says that customers and prospects want electric and fuel-efficient vehicles. He says that these investments from Toyota will help meet consumer demands in a quick response to a rapidly evolving market. Toyota is committed to investing in U.S. production, and the plants are prepared to take on the upcoming challenge. Here is a breakdown of the investments in various U.S. plants.
$222 Million Investment In Toyota Alabama
The largest chunk of the investment (more than half) will go to Toyota Alabama in Huntsville, Ala. This investment will be used to build a new production line for four-cylinder engines that power both hybrid electric and combustion vehicles.
The plant will also use this money to expand its coverage area by more than 110,000 square feet. This will the sixth footprint expansion of Toyota Alabama since the early 2000s.
The plant currently has a production capacity to make 900,000 Toyota engines every year. This makes it a key facility in Toyota's U.S. production, representing almost $1.5 billion of investment from the automaker.
$109 Million Investment In Toyota Missouri
Toyota Missouri is already an over $500 million dollar investment for Toyota's US production. The plant produces more than 3 million cylinder heads each year for Toyota. This massive new investment will enable them to acquire new equipment for three production lines to produce four-cylinder engine heads.
$36 Million Investment In Toyota Tennessee
The Toyota Tennessee plant represents more than $400 million in investments for Toyota's U.S. production of over 2 million engine blocks each year. This $36 million investment will update the plant's equipment to produce brand new four-cylinder engine blocks for Toyota.
$16 Million Investment In Toyota Kentucky
Recently, the Toyota Kentucky plant announced its four-cylinder engine line. The $16 million investment will help increase this line's flexibility and the plant's ability to meet new and growing consumer demands.
Toyota Kentucky can currently produce up to 600,000 powertrain units each year. Being Toyota's largest plant in the world, the Kentucky plant is already an $8.5 billion investment for the company. Apart from four-cylinder powertrains, it also produces six-cylinder powertrains and seven Toyota and Lexus models.
Toyota Is Committed To Their U.S. Production
Previously, Toyota announced investments in their U.S. manufacturing plants and operations to a whopping total of $5.1 billion. This investment was in support of their electrification efforts and to demonstrate Toyota's commitment to producing locally to support the local economy.
Their U.S. production currently delivers half of the vehicles sold in the U.S. market. In contrast, their North American assembly facilities assemble more than 75 percent of the vehicles sold in the U.S. Apart from investments in plants and manufacturing, Toyota is also investing in their future workforce.
To this end, they announced their Driving Possibilities initiative. It is a recent $110 million initiative that supports PreK-12 and further education to progress local communities and prepare exciting youth for the job market.