Toyota has revealed plans to invest an additional $1.3 billion in its Kentucky factory to prepare for the production of a new three-row all-electric SUV specifically designed for the U.S. market. This substantial capital injection brings Toyota’s total investment in the factory to nearly $10 billion, underscoring the company’s strong commitment to electrification.
Key Takeaway
Toyota is making a significant investment of
.3 billion in its Kentucky factory to prepare for the production of a new three-row all-electric SUV, signaling the company’s strong commitment to vehicle electrification and its efforts to keep pace with the evolving automotive landscape.
Toyota’s Electrification Strategy
In response to the industry’s shift towards battery-electric vehicles, Toyota has faced criticism for its perceived lag in this area. Despite offering a diverse range of gas, hybrid, plug-in hybrid, and battery electric vehicles, the company has been urged to accelerate its efforts in the electric vehicle (EV) segment. In line with this, Toyota announced its intention to introduce 10 new battery-powered vehicles by 2026, signaling a significant push towards electrification.
Investment Details
The $1.3 billion investment will facilitate the assembly of the all-electric SUV and the establishment of a battery pack assembly line. Production of the three-row all-electric SUV is slated to commence in 2025, positioning it to compete with other offerings in the market, such as Kia’s EV9. Notably, the battery cells for these vehicles will be manufactured at Toyota’s North Carolina factory, which has also received substantial investment from the automaker. Last year, Toyota announced a $2.1 billion investment in the new battery plant, further solidifying its commitment to the EV segment.
Toyota’s Commitment to Electrification
Kerry Creech, president of Toyota Kentucky, emphasized that this investment announcement reflects the company’s dedication to vehicle electrification and its ongoing reinvestment in U.S. operations. Over the past three years, Toyota has announced a total of $17 billion in new investments in its U.S. manufacturing operations, all geared towards supporting its electrification endeavors.
