Toyota Is Investing in the U.S. Again, This Time in Texas
Global car manufacturers are no strangers to foreign investment. To reach new markets or strengthen their holds in established regions, several automakers have made efforts to increase investments in certain regions. One brand, Toyota, has invested in the United States time and time again. Its latest effort is only a continuation for the car company.
Toyota invests in Texas
Many consider Texas to be Toyota’s American home as the automaker already has a strong presence. On this occasion, Toyota announced plans to invest in its factory in San Antonio. The plant mainly builds the Tacoma and Tundra trucks. The San Antonio truck assembly plant is one of the 10 that Toyota has in the U.S. It’s set to receive a major boost with Toyota investing $361 million in the plant.
San Antonio Mayor Ron Nirenberg said Toyota’s announcement indicates that the region is ready for investments from major manufacturers. He added that the car company’s investment would further create opportunities capable of changing an entire generation.
The car company is also investing in the region’s workforce as a source for the jobs the plant will create. It’s doing this by donating a further $500,000, which will go to Alamo Promise, a nonprofit organization that provides tuition assistance to local students.
For Texas residents, it gets better. Aisin AW, part of the Toyota Group and a major Toyota supplier, is set to invest $400 million toward building a facility in the neighboring city of Cibolo, Texas. The new facility is expected to add 900 jobs to the community.
Toyota’s continuing relationship with the U.S.
Toyota’s presence in America is considerably great. This is mainly because of how much the automaker is committed to building vehicles in the market they are intended for. This new combined $791 million investment is part of Toyota’s plan to invest $13 billion in its American manufacturing facilities through 2025.
Toyota plans on increasing the parts and models it builds in the U.S. The investments are meant to expand plants that build axles, engines, and other car parts. It also intends to add the production of new hybrid vehicles in America. In response to the growing preference for SUVs among consumers, Toyota will add RAV4 production to its plant in Georgetown, Kentucky, which currently only produces sedans.
In partnership with Mazda, Toyota is constructing a $1.6 billion assembly plant in Huntsville, Alabama. The plant will produce the Corolla and is set to begin operation in 2021. The car company also plans to step up its Alabama plant’s production. The factory makes engines for cars like the Highlander and RAV4 SUVs.
Toyota has been in the United States for over 60 years and has created a great footprint in the country. The latest announcement from the Japanese automaker shows it only plans to strengthen its American presence with improved production of locally built vehicles.
Currently, the car company has 10 plants in eight states in the U.S., a dealer network 1,500-strong, and an extensive supply chain. Furthermore, the company employs more than 475,000 Americans, both directly and indirectly. Toyota’s renewed efforts only serve as great news for the American auto industry.