Toyota Invests $1.3 Billion to Produce New All-Electric SUV at Kentucky Plant
Toyota announced on Tuesday that it will be investing an additional $1.3 billion into its flagship Georgetown, Kentucky, plant to begin production of a new all-electric SUV. This latest investment brings Toyota’s total investments in the plant to nearly $10 billion. The move is part of the automaker’s commitment to vehicle electrification and its continued reinvestment in its U.S. operations.
Toyota Kentucky President Kerry Creech expressed excitement about the opportunity and praised the generations of team members who helped prepare for it. The company remains dedicated to its core values and putting its people first as it leads the charge into the future. Toyota’s investment comes at a time when domestic rivals like Ford have shifted their focus away from EVs and towards higher-margin hybrid and gasoline-powered models.
The investment will support Toyota’s previously announced battery electric vehicle assembly in Kentucky. In addition, the facility will now include a battery pack assembly line, with batteries being supplied by Toyota Battery Manufacturing North Carolina. The move solidifies Toyota’s commitment to the Bluegrass region and Scott County, where the Kentucky plant is a key hub for the company.
Kentucky Governor Andy Beshear expressed gratitude towards Toyota for its ongoing investments in the state, which have resulted in high-quality, well-paying jobs for citizens. The Georgetown plant employs approximately 9,400 workers and produces up to 550,000 vehicles annually, including the popular Camry sedan.
In addition to the investment announcement, Toyota also raised its full-year operating profit forecast by nearly 9% after its third-quarter earnings exceeded analysts’ estimates. This positive outlook is attributed to a weaker yen and strong sales of high-margin cars and hybrid vehicles.
Reporting by Reuters contributed to this article.
Analyst comment
Positive news: Toyota’s $1.3 billion investment in its Kentucky plant to produce a new all-electric SUV demonstrates the automaker’s commitment to vehicle electrification and its U.S. operations. This move solidifies Toyota’s position in the market and secures high-quality jobs for citizens in Kentucky. Additionally, raising its full-year operating profit forecast by nearly 9% shows positive financial performance. The market is likely to respond favorably, with increased demand for Toyota’s electric vehicles and potential growth in its stock value.
