More money, more hybrids
In a statement released on November 18, the Japanese automaking giant Toyota announced that, as part of its recent commitment to invest up to $10 billion in the U.S. over the next five years, the company will invest a total of $912 million to make improvements across five manufacturing plants in the U.S. and increase the amount of hybrid cars it will produce in the States.
Toyota states that this investment will create 252 new jobs across its plants in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri, which represent various critical and essential stages of gas-electric hybrid production. In a statement, Kevin Voelkel, the senior vice president of Toyota’s manufacturing operations, recognized that Toyota’s hybrids are hot sellers and that its latest push will help the automaker stock its dealer lots with more fuel-sippers.
“Customers are embracing Toyota’s hybrid vehicles, and our U.S. manufacturing teams are gearing up to meet that growing demand,” Voelkel said. “Toyota’s philosophy is to build where we sell, and by adding more American jobs and investing across our U.S. footprint, we continue to stay true to that philosophy.”
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Toyota is pumping millions into five different plants
Of the five U.S.-based plants that Toyota outlined for investment, the most significant chunk of change will go towards Toyota’s operations in West Virginia. Toyota states that its $453 million investment in its Buffalo, West Virginia, plant will be allocated towards a factory expansion aimed at increasing production of four-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles, and rear motor stators.
The new wing, which it plans to begin operating in 2027, will add 80 jobs and contribute to a total investment of $3.3 billion in the factory, along with its annual production of over a million engines, transmissions, and hybrid transaxles.
Toyota’s largest global plant in Georgetown, Kentucky, will receive $204.4 million for an all-new machining line for four-cylinder hybrid-compatible engines, which will create 82 new jobs and is scheduled to launch in 2027. In addition, Toyota is investing $125 million in its factory in Blue Springs, Mississippi, which will enable the production of the Corolla Hybrid, marking the first electrified Corollas to be manufactured in the U.S.
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Toyota is also pumping $71.4 million into its casting plant in Jackson, Tennessee, which will go towards three all-new production lines dedicated to the production of critical components for hybrid vehicles, including transaxle cases, housings, and engine blocks. It claims that it will add 33 jobs when production on the new lines starts in 2027 and 2028.
In addition, the company will also invest $57.1 million into its casting plant in Troy, Missouri, which makes cylinder heads for hybrids. The investment will add a new production line for these parts, which will create 57 jobs and increase plant capacity by more than 200,000 cylinder heads per year.
In a statement, Toyota reiterated that these investments are tied to its goals of localizing production and its commitment to growing its electrified vehicle (hybrids, plug-in hybrids, and battery-electric cars) sales. According to Toyota, 50% of its U.S. sales consist of electrified vehicles, and 76% of its U.S. sales are made in North America.
“We’re proud of our plant’s continued growth and honored to help lead Toyota’s transition into a mobility company,” Alivia Luikart, team member, Toyota West Virginia, said in a statement. “Our future is bright, and it’s rewarding to know that our company has faith in our ability and trusts our team to drive Toyota forward.”
Final thoughts
It should be noted that this new announcement comes on the heels of another significant investment that Toyota made in localizing domestic automobile production. On November 12, the automaker said that it began production at its all-new battery plant in Liberty, North Carolina, a $14 billion project that added 5,100 jobs in Toyota’s eleventh plant in the US, and the company’s first and only battery plant outside of Japan.
With sales of the ever-popular and hybrid-only RAV4 crossover and Camry making quite the splash in its U.S. sales results sheets, it seems that Toyota is more committed to securing the future of electrified mobility, especially as it sells many more hybrids than EVs.
