According to Bloomberg, Toyota Motor Corporation plans to increase its investment in a Kentucky factory by $1.3 billion to start production of a three-row electric SUV from next year.
Toyota announced on February 6 that this additional investment will be used for the company's first electric vehicle manufactured in the United States, as well as other electric vehicle models. This includes establishing a battery assembly line at the factory, with the batteries supplied by Toyota's newly established facility in North Carolina.
"Today's announcement reflects our commitment to vehicle electrification and further reinvestment in our U.S. operations," said Kerry Creech, President of Toyota Kentucky, in a statement.
Compared to competitors such as Volkswagen and General Motors, Toyota has taken a more cautious approach to launching pure electric vehicles. Toyota's electrification efforts have mainly focused on developing hybrid models. Currently, the two electric vehicles sold by Toyota in the United States, the bZ4X and the Lexus RZ 450e, are both manufactured in Japan.
This investment brings Toyota's total investment in its Georgetown factory in Kentucky since 1986 to nearly $10 billion. Toyota stated that this expenditure "reinforces Toyota's commitment to high-quality vehicles and long-term employment stability."
The Kentucky factory is Toyota's oldest automobile assembly plant in the United States, employing approximately 9,400 workers, and is one of several non-union facilities, with the United Auto Workers union (UAW) targeting the factory in the latest round of collective bargaining.
While increasing investment in the United States, Toyota's performance has been strong, not only announcing strong profit growth in the recent quarter but also raising its full-year profit forecast.
