2023 Prius Prime on display, April 6, 2023.
Scott Mlyn | CNBC
Toyota Motor on Tuesday announced plans to invest $912 million in U.S. manufacturing plants in five Southern states as part of a previously announced plan for the company to invest up to $10 billion domestically by 2030.
The investments announced Tuesday are broadly meant to support increasing production of hybrid vehicles, which Toyota leads with a more than 51% market share through the third quarter of this year, according to Motor Intelligence data. Most of the investments are expected to be completed by 2027.
The largest investment announced Tuesday is $453 million in Toyota’s Buffalo, West Virginia, plant to increase assembly of four-cylinder hybrid-compatible engines.
Other investments include $204.4 million in a plant in Georgetown, Kentucky, for four-cylinder hybrid-compatible engines and $125 million to expand Corolla production in Blue Springs, Mississippi, to include hybrid models.
The investments are expected to create 252 new jobs, according to Toyota, which is the second-largest seller of new vehicles in the U.S. behind General Motors.
“Customers are embracing Toyota’s hybrid vehicles, and our U.S. manufacturing teams are gearing up to meet that growing demand,” Kevin Voelkel, Toyota Motor North America senior vice president of manufacturing operations, said in a release. “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.”
Tuesday’s news comes less than a week after the Japanese automaker confirmed plans that were announced last month by President Donald Trump to invest up to $10 billion more than previously expected over the next five years in the U.S.
It also comes days after Toyota scion and Chairman Akio Toyoda reportedly wore a “Make America Great Again” hat and T-shirt featuring Trump and Vice President JD Vance while hosting a racing event at the Fuji Speedway in Japan.
Automotive News on Sunday reported Toyoda, a racer and car enthusiast, hosted U.S. Ambassador George Glass at the event, which also included comments about tariffs.
“I’m not here to argue whether tariffs are good or bad. Every national leader wants to protect their own auto industry,” Toyoda reportedly said. “We are exploring ways to make tariffs a winner for everyone. The people we want most to be winners are our customers.”
Toyota and the entire automotive industry have been trying to navigate production plans amid regulatory changes impacting all-electric vehicles and Trump’s litany of tariffs this year on new vehicles and auto parts.
