Dive Brief:
- Toyota Motor is investing $912 million over the next five years in its U.S. manufacturing operations to boost hybrid vehicle production, the company announced in a Nov. 18 press release.
- The investments will add over 250 new jobs and be distributed among five of the automaker’s U.S. plants in Georgetown, Kentucky; Blue Springs, Mississippi; Buffalo, West Virginia; Jackson, Tennessee; and Troy, Missouri.
- The investments are part of a larger $10 billion commitment that Toyota announced on Nov. 13 to increase vehicle manufacturing in the United States. It also includes ramping up domestic production of lithium-ion batteries for its electrified vehicles.
Dive Insight:
Hybrid vehicles, which are more affordable for consumers and more profitable for automakers to produce compared to fully electric vehicles, continue to serve as a bridge for Toyota and other automakers while they pursue their more long-term electrification goals.
Honda Motor Co., for example, announced in May that it is reducing its investments in electric vehicles by $20.7 billion in order to focus on launching new hybrid models. The automaker believes that its next-generation hybrid models will be integral in its long-term transition to EVs.
Toyota said its $10 billion commitment in U.S. manufacturing is part of its "best-company-in-town" multi-pathway strategy of investing locally and producing a mix of vehicles tailored to the needs of regional markets. But Toyota continues to grow its hybrid vehicle sales as demand for these models increases.
The company sold over 1 million electrified vehicles in 2024, the highest in company history. During its earnings call earlier this month, Toyota reported that sales of electrified vehicles, including hybrids, accounted for 46.9% of its global retail sales volume in the first half of FY2025, driven primarily by strong hybrid-electric (HEV) demand in North America.
The largest investment among Toyota’s five U.S. plants ($453 million) will be in Buffalo to increase output of 4-cylinder engines for hybrid vehicles, as well as the automaker’s sixth-generation hybrid transaxles and rear motor stators. Production is slated to begin in 2027. The plant currently assembles more than 1 million engines, transmissions and hybrid transaxles a year, according to Toyota.
“We are proud to see Toyota continue to grow in the Mountain State as they build world-class technology and drive the future of American manufacturing,” West Virginia Gov. Patrick Morrisey said in a statement.
A $204.4 million investment is also being made in Toyota’s Georgetown plant to install new machinery to produce 4-cylinder engines for hybrid vehicles, beginning in 2027. The Georgetown plant is Toyota’s largest global production facility and has the capacity to manufacture up to 700,000 units annually, per the release.
“I commend Toyota for their strong commitment to American workers through their new, $912 million investment in the United States, including $204.4 million for the Georgetown plant right in the heart of Kentucky,” said U.S. Rep. Andy Barr, R-Ky., in a statement. “Toyota’s expansion across the country will create hundreds of good-paying jobs, strengthen America’s manufacturing base, and drive economic growth in our communities.”
A $71.4 million investment in Toyota’s casting plant in Jackson will be used to increase production of hybrid transaxle cases, housings and engine blocks for hybrid vehicles. The automaker will also invest $57.1 million in its Troy casting plant to manufacture engine cylinder heads for hybrid vehicles beginning in 2027. Output will be increased by 200,000 units annually in Missouri.
Toyota also plans to invest $125 million in its factory in Blue Springs to assemble the new hybrid-electric Corolla, which will be the first electrified Corolla model built in the U.S.
Toyota employs approximately 50,000 workers in the U.S. across its 11 manufacturing facilities. Since 2020, the automaker announced new investments of nearly $21 billion in U.S. manufacturing to support its electrification efforts.
