Toyota announced Tuesday it will invest $912 million in five U.S. factories to expand production of hybrid vehicles to meet growing demand.
The investment in hybrid vehicles, in which Toyota Motor Corporation is the market leader, is part of the Japanese automaker’s recent announcement that it will invest up to $10 billion over the next five years in the United States. It also comes at a time when the auto industry, including Toyota, is trying to weather the impact of tariffs and the end of federal tax credits for EVs.
The capital will be spread across Toyota’s five plants in West Virginia, Kentucky, Mississippi and Missouri, and will primarily focus on adding new production lines for parts used in hybrid vehicles.
Approximately $125 million will be spent to enable production of the hybrid electric Toyota Corolla, which will be the first time the model will be assembled in the United States. The largest amount, approximately $453 million, will be used to expand production of four-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles, and rear motor parts (called stators) at Toyota’s Buffalo, West Virginia, plant.
