Toyota Motors announced on Monday (March 23) that they will be investing $1 billion in their factories in the states of Kentucky and Indiana in the United States as part of their plan to invest up to $10 billion in the country over the next five years.
Today, Toyota celebrated the 40th anniversary of its factory in Kentucky – the largest manufacturing plant for Toyota globally. In a press release on their website, Toyota stated, “To commemorate this event, Toyota has announced an investment of $1 billion in its operations in Kentucky and Indiana, demonstrating the company’s commitment to meeting the growing customer demands and providing a variety of vehicle models.”
Out of the newly invested $1 billion, $800 million will be dedicated to Toyota’s factory in Kentucky. This new funding aims to advance Toyota’s multi-path electrification strategy to prepare for the production of the second all-electric vehicle. This investment will also enhance the assembly capacity for Toyota’s Camry and RAV4.
The remaining $200 million will be allocated to the investment in Toyota’s Indiana plant to increase the production capacity of one of Toyota’s most popular SUVs, the “Grand Highlander.”
Mark Templin, Executive Vice President and Chief Operating Officer of Toyota North America, stated, “Toyota’s investment in the United States is long-term and closely linked to our philosophy of ‘building where we sell, sourcing where we build.’ For nearly 70 years, we have built an excellent value chain. Our team has crafted over 35 million cars and trucks for American customers, covering world-class design, engineering, and assembly.”
Governor of Kentucky Andy Beshear, together with members of the Toyota team, celebrated the milestone of the factory’s 40th anniversary and thanked Toyota for bringing job opportunities and economic development to the state.
“Forty years ago, Toyota chose Georgetown as its new home in Kentucky, making Kentucky a better place. I am proud to announce that today we are celebrating this extraordinary milestone together, and this collaborative relationship and success continue to endure,” Beshear said. He added that since the start of production, the Kentucky plant has produced over 14 million vehicles, benefiting the people of Kentucky by providing quality employment opportunities and promoting economic development.
The Japanese automotive manufacturing giant announced in November of last year that they plan to add up to $10 billion in investment in the United States over the next five years. This will bring Toyota’s total investment in the U.S. since operating there nearly 70 years ago to close to $60 billion.
Last year, the Trump administration reached a trade agreement with Japan, modifying the country’s automobile import rules. Subsequently, Toyota became the first Japanese automaker to commit to exporting American-made cars to Japan.