Japanese automaker Toyota Motor stated it is investing $1.33 billion in its Kentucky plant as part of a strategy to invest $10 billion in the United States over the next 5 years.
The expenditure in the plant, Toyota’s largest, comes amidst uncertainty over U.S. President Donald Trump’s trade policies that could impact specific Japanese firms’ capital expenditure strategies.
Trump slammed the car manufacturer earlier this year and said he would enforce a large fee if it constructed its Corolla vehicles for the United States market at a plant in Mexico.
Toyota joins a host of car manufacturers including Fiat Chrysler Automobiles, Honda Motor and Daimler AG that have announced investments in recent times.
Even U.S. automobile makers Ford Motor and General Motors have revealed plans to spend more locally.
“Toyota’s decision to invest $1.3 billion in their Kentucky plant is additional evidence that manufacturers are now confident that the financial climate has greatly enhanced under my administration”, Trump’s statement released by Toyota.
Toyota stated that the investment would assist in its brand-new production process that would permit a more flexible production environment, helping its construct better automobiles and react quicker to clients.
The Kentucky plant has about 8,200 workers and Toyota just recently booted the count by over 700 ahead of the launch of the brand-new version of Camry.
