Toyota said Tuesday it will invest $912 million in five US factories to increase production of hybrid vehicles to meet rising demand.
The investment in hybrid vehicles – in which Toyota is a market leader – is part of the Japanese automaker’s recent announcement to spend up to $10 billion over the next five years in the United States. It also comes as Toyota and the rest of the automotive industry are trying to deal with the effects of tariffs and the expiration of federal tax credits for EVs.
The capital will be spread across Toyota’s five factories in West Virginia, Kentucky, Mississippi and Missouri and will be focused on adding new production lines for components used in large-scale hybrid vehicles.
About $125 million will be spent to enable production of the hybrid-electric Toyota Corolla, which will be the first model to be assembled in the United States. The largest portion, approximately $453 million, will be spent expanding production of 4-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles and rear motor components (called stators) at Toyota’s Buffalo, West Virginia plant.
