Toyota confirmed on Tuesday an investment of $912 million USD in five of its plants located in the southern United States. The new capital injection is part of a broader program unveiled last week, which sees the automaker committing to investing up to $10 billion USD within the U.S. by 2030.
Betting on hybrids, a segment dominated by Toyota
A main goal of the plan is to support increased production of hybrid vehicles, a field Toyota already dominates with over 51-percent market share in the U.S. this year, according to Motor Intelligence. The majority of the announced projects are expected to be completed by 2027.
West Virginia plant the biggest beneficiary
The largest investment — $453 million USD — will go to the Buffalo, West Virginia plant to increase the assembly of 4-cylinder engines compatible with hybridization.
Toyota is also allocating:
• $204.4 million USD to its Georgetown, Kentucky plant to modernize hybrid 4-cylinder engine production;
• $125 million USD to the Blue Springs, Mississippi, facility to add production of hybrid versions of the Corolla.
The new projects are expected to create 252 new jobs.
Toyota, it should be repeated, remains the second-largest seller of new vehicles in the United States, behind General Motors.
A shifting political and industrial landscape
The latest announcement comes just days after Toyota confirmed its intention to significantly increase its U.S. investments over five years.
Surely not coincidentally, Chairman Akio Toyoda was spotted wearing a “Make America Great Again” cap and a t-shirt featuring the likenesses of Donald Trump and VP JD Vance during a recent automotive event at Fuji Speedway in Japan.
An industry reevaluating its strategies
Like the rest of the sector, Toyota is adjusting its production plans to navigate regulatory changes surrounding 100-percent electric vehicles and tariffs imposed this year in the US on imported vehicles and parts. The focus on hybrids reflects the goal of flexibility Toyota has given itself for the coming decade.