Toyota Motor stated on Tuesday it will invest $373.8 million in five manufacturing plants in the United States to produce its first American-made hybrid powertrain, as it seeks to build more vehicles in the market which it sells.
The automaker stated the investment would also be used to present Toyota New Global Architecture (TNGA) strategy at its Alabama plant, an effort that aims to lower the cost of developing new vehicles, partly by utilizing more common components.
The company would likewise begin production of hybrid vehicle transmissions at its Buffalo, West Virginia facility and broaden its 2.5-liter engine capacity at Georgetown, Kentucky, Toyota stated.
“This recent wave of investment represents our efforts to localize production of hybrid powertrains to the U.S.,” stated Jeff Moore, senior vice resident, manufacturing.
Toyota will modify its plant located in Jackson, Tennessee to accommodate production of vehicle transmissions while its Huntsville, Alabama plant would go through an upgrade enabling it to construct engines complementing its strategy, the company stated.
The tasks are set to start this year and would be operational in 2020, Japan’s most significant car company stated.
In January, Toyota’s North America CEO Jim Lentz stated the company would invest $10 billion in the United States during the next 5 years to meet demand and upgrade plants to develop more fuel-efficient models.