For the first time in Toyota’s history the automaker will produce parts exclusively in the U.S.. The carmaker will invest $373.8 million into hybrid powertrains here. The money invested will be split between 5 U.S. manufacturing plants, and each new project will begin this year, and must be completely operational by 2020.
"This investment is part of our long-term commitment to build more vehicles and components in the markets in which we sell them," Toyota Motor North America CEO Jim Lentz. New production of hybrid transaxles will begin at the company's Buffalo, W.Va., facility with the support of $115.3 million, the first time Toyota has made that part domestically. About $120.9 million will bolster 2.5-liter engine capacity at the plant in Georgetown, Ky., and $14.5 million will go toward modifying the company's plant in Bodine Jackson, Tenn., making hybrid transaxle cases, housings and 2.5-liter engine blocks. The engines built in Kentucky and transaxles made in West Virginia will be used in hybrid vehicles built in North America, the company said, such as the Highlander Hybrid manufactured in Princeton, Ind.
Production of 2.5-liter cylinder heads will also increase at Bodine Aluminum's Troy, Mo., plant with $17.1 million, and $106 million will go toward Toyota's Huntsville, Ala., plant to build engines to complement Toyota's New Global Architecture strategy, an initiative aimed to reduce the cost of developing new vehicles, partly by using more common components. The expansion of the Alabama plant will create 50 jobs, the company said.