Toyota lays out US$912 million plan to boost US hybrid production

[TOKYO] Toyota Motor detailed plans to invest US$912 million to increase output of hybrid components and vehicles across five states, part of a broader US$10 billion commitment in the US over the next five years. 

Factories in West Virginia, Kentucky, Mississippi, Tennessee and Missouri will see 252 new jobs as a result of the initiative, the world’s biggest carmaker said in a statement. 

The move underscores Toyota’s bet that hybrids will dominate US sales in the near term as consumers balk at high EV prices following the end of tax credits. The investment may also strengthen the Japanese carmaker’s foothold in the market as Ford Motor, General Motors and other US carmakers scale back EV ambitions and revisit hybrid strategies to meet shifting demand and emissions targets.

Toyota now offers hybrid-only versions of the RAV4 compact crossover and Camry sedan in the US, thanks to robust demand for gasoline-electric powertrains with better mileage. 

The Japanese manufacturer, which has long advocated for a more measured approach to sell a broad range of vehicle options for different markets, said that its “philosophy is to build where we sell,” and that its North American manufacturing sites assemble some 76 per cent of the vehicles sold in the US. 

Last week, Toyota confirmed it would boost spending in the US, after President Donald Trump said in October that the carmaker planned a large-scale investment. Trump has been pushing to shift more production to the US and has imposed punitive tariffs on many car parts and vehicles sourced from abroad. 

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Toyota imported about half of the vehicles it sold in the US last year, mostly from Canada and Mexico but also including some 281,000 vehicles made in Japan. BLOOMBERG