Toyota announced on Tuesday it will invest nine hundred twelve million dollars in five United States factories. This investment will expand production of hybrid vehicles to meet increasing demand. As a market leader in hybrid vehicles, this move is part of the Japanese automaker’s recent pledge to spend up to ten billion dollars in the United States over the next five years. This decision comes as Toyota and the wider automotive industry navigate the effects of tariffs and the conclusion of federal tax credits for electric vehicles.
The capital will be distributed across five factories located in West Virginia, Kentucky, Mississippi, and Missouri. The investment will primarily focus on establishing new production lines for components used in hybrid vehicles.
Approximately one hundred twenty-five million dollars will be allocated to enable production of a hybrid-electric Toyota Corolla. This will be the first time this model is assembled in the United States. The largest portion of the investment, about four hundred fifty-three million dollars, will go to Toyota’s plant in Buffalo, West Virginia. This funding will expand production of four-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles, and rear motor components known as stators.