Toyota to invest $1.33 bn for setting up automotive plant in Kentucky

This investment is part of Toyota's plan to invest $ 10 billion in the US over the next five years

BS B2B Bureau Georgetown, Kentucky (USA)

Last Updated : Apr 12 2017 | 4:09 PM IST

Japanese automotive company Toyota will invest $1.33 billion for setting up a manufacturing plant at Kentucky (USA). With this investment, the highest by any automaker in Kentucky, the company will produce Camry (2018 model) using Toyota New Global Architecture (TNGA). Thus, Camry, the number one selling car in America for the past 15 years, will become the first Toyota vehicle made in the US to fully incorporate the new vehicle development and production technology.

This $ 1.33 billion investment is part of Toyota’s plan to invest $ 10 billion in the US over the next five years, on top of the nearly $22 billion the company has invested in the US over the past 60 years.

“Toyota New Global Architecture is about exciting, ever-better vehicles for our customers as it will improve performance of all models, including increased fuel efficiency, more responsive handling, and a more stable, comfortable feel while driving,” said Jim Lentz, CEO of Toyota Motor North America.

TNGA represents a completely new strategy to the way the company designs, engineers, and manufactures its vehicles. In addition, it will shorten the development cycle for vehicle improvements and new vehicles. TNGA retains all of Toyota's traditional values of exceptional build quality and safety while injecting a fun driving experience with more responsive handling, regardless of the model. It also allows for a more flexible production environment, which will allow Toyota Kentucky to build ever-better cars, and respond quicker and more capably to customer demands down the road.

In addition to TNGA improvements, Toyota Motor Manufacturing, Kentucky, Inc (TMMK) will undergo other makeovers that will, together, modernise and streamline the production process. That includes updating equipment and construction of an all-new paint shop.

“This is the largest investment in our plant's history and it speaks directly to the quality of our people and our products, as well as the partnerships we've forged in the local community and across the state. This major overhaul will enable the plant to stay flexible and competitive, further cementing our presence in Kentucky,” said Wil James, president, Toyota Motor Manufacturing, Kentucky, Inc.

Toyota Kentucky is the automaker's largest plant in the world, employing 8,200 team members. This represents an all-time high after recently adding over 700 people to support the upcoming launch of the 2018 Camry. Last year, TMMK produced nearly a quarter of the total number of Toyota vehicles produced in North America - over 500,000. In total, the plant has produced more than one-third - 11 million - of all Toyota vehicles manufactured in North America since 1986.

The new project adds to the $530 million investment the plant committed to in 2013, in part to support Lexus production. This brings Toyota Kentucky's investment in the last four years to approximately $1.86 billion.

“Toyota's decision to invest $1.3 billion in their Kentucky plant is further evidence that manufacturers are now confident that the economic climate has greatly improved under my administration and echoes the recent National Association of Manufacturers' 2017 Outlook Survey showing that 93 percent of manufacturers are now optimistic, which is an increase of 37 percent from just a few months ago,” commented US President Donald Trump.