Automotive giant expands production: Toyota to invest a billion in its U.S. plants
24 March 20:47
Toyota Motor Corporation has announced an additional $1 billion investment in its U.S. operations, according to [Komersant].
The funds will be used to modernize production, prepare for the launch of electric vehicles, and expand capacity for popular models.
The investment is part of a broader program by the company, which could reach $10 billion over the next five years.
Where the investments will go
The bulk of the investment—$800 million—will go toward modernizing the plant in Georgetown, Kentucky.
This facility is being prepared for:
- producing battery electric vehicles (BEVs);
- increasing production of popular models
- Toyota RAV4
- Toyota Camry.
An additional $200 million will be invested in the plant in Princeton, Indiana, where production of the mid-size Toyota Grand Highlander crossover will be expanded.
Focus on hybrids and electric vehicles
The company attributes the expansion of production to growing demand for hybrid vehicles.
Currently:
- the Toyota Camry and Toyota RAV4 are sold exclusively in hybrid versions;
- more than half of Toyota Grand Highlander sales are also hybrids.
Demand for fuel-efficient cars has risen amid rising gasoline prices linked to the war in Iran.
Lexus production and plant restructuring
Part of the investment has already been spent on retooling the production line in Kentucky.
Previously, the premium Lexus ES sedan was produced there, but in 2024, production of this model was moved back to Japan.
Currently, the company produces three Lexus models in North America:
- the Lexus TX sedan in Indiana;
- the Lexus NX and Lexus RX crossovers — in Canada.
Political Context
The company’s large-scale investment plans first came to light in October 2025 following U.S. President Donald Trump’s trip to Japan.
The new announcement came a few days after Japanese Prime Minister
Sanae Takaichi.
Trump had previously criticized Toyota for excessive imports of cars from Japan to the U.S.
A long history of investment
According to company executives, investments in the U.S. align with its principle of “manufacturing where we sell.”
Over nearly 70 years of operations in the U.S., Toyota Motor Corporation has invested more than $50 billion in the American economy.
In 2017, during Donald Trump’s first term, the company had already pledged to invest $13 billion in U.S. manufacturing, and according to Toyota, those funds have been fully utilized.
Tariff Pressure and Global Losses in the Auto Industry
These investments are taking place against a backdrop of trade tensions.
According to the Japanese publication Nikkei, Japan’s seven largest automakers lost $9.74 billion due to U.S. tariffs, marking the industry’s first drop in profits since the pandemic.
Overall, the global auto industry, according to analysts’ estimates, has already lost at least $35 billion due to U.S. tariff policies.
