The Japanese automotive giant’s new step aims to continue hybrid production and expand in the US market.
This investment comes as part of Toyota’s plan to invest USD 10 billion in the U.S. over the next five years. The decision also comes at a time when the automotive industry is grappling with the effects of prices and the end of federal tax credits for electric vehicles.
Capital will be distributed among five production facilities located in West Virginia, Kentucky, Mississippi, and Missouri, according to the company’s organizational structure. The majority of investments will be allocated to expanding production of engines, parts, and other critical components used in hybrid vehicles.
Approximately USD 125 million in funding will be allocated for the Toyota Corolla Hybrid, which will be the first hybrid electric model to be assembled in the United States. The largest investment, USD 453 million, will be made to support the production of hybrid compatible 4 cylinder engines, next generation hybrid engines, and rear motor components at Toyota’s plant in Buffalo, West Virginia.
Toyota aims to strengthen the hybrid vehicle market and expand its production activities in the U.S. with these investments.
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