[Global Network Report reporter Wang Huan] According to the Japanese Kyodo News reported on March 15, Toyota Motor Corporation announced on the 14th that the total investment in the United States in the five years to 2021 is expected to rise to about 13 billion US dollars. Compared with the 10 billion US dollars announced in 2017, the increase is 30%. In the face of the Trump administration, which requires increased employment in the United States, it will emphasize contributions by increasing investment.
Toyota will invest $750 million in five US vehicle and component plants to expand production of hybrid vehicles (HVs) and engines, adding about 600 jobs. The increase in investment includes the announcement of a new plant with Mazda in Alabama.
US President Trump sent a tweet on the 14th to welcome: “Congratulations to Toyota. It is a major news for American auto industry workers.”
Toyota’s promotion of localized production may also be in response to the increase in the proportion of parts purchased in the region as a zero-tariff condition for the North American Free Trade Agreement (NAFTA).
The Kentucky plant will have a hybrid line of the best-selling SUV “RAV4″ and the high-end Lexus sedan “ES”. The production capacity of hybrid vehicles is about 100,000 vehicles per year for RAV4 and about 12,000 vehicles per year for ES.
The export of the RAV4 hybrid car originally produced in Canada to the United States will in principle be transferred to the United States. The ES hybrid car originally had a part of the US-made export car produced by Toyota Kyushu Company (Miyaru City, Fukuoka Prefecture) and will be transferred to the United States. Toyota explained that “the increased demand for ES in other regions has no effect on production in Japan”.
In addition, the Alabama plant will also expand engine capacity.
Post time: Mar-18-2019