Toyota announced on Tuesday a $912 million investment in five U.S. factories to increase hybrid vehicle production. This move reflects the growing demand for eco-friendly cars in the country.
The investment is part of Toyota’s broader $10 billion plan over the next five years to expand hybrid vehicle production in the United States. The company aims to strengthen its leadership in hybrid technology while adapting to changes in consumer preferences and market trends.
The funding will be distributed across Toyota plants in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri. It will focus on adding new production lines and facilities for hybrid vehicle components.
As part of the expansion, Toyota will invest roughly $125 million to begin U.S. assembly of the hybrid-electric Toyota Corolla. This marks the first time the Corolla hybrid will be manufactured in the United States.
The largest portion of the investment, approximately $453 million, will go to Toyota’s Buffalo, West Virginia, plant. The expansion will increase production of 4-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles, and rear motor components, including stators.
Toyota’s investment in vehicle production comes amid challenges such as tariffs and the phase-out of federal tax credits for electric vehicles (EVs). Despite these hurdles, Toyota continues to prioritize hybrid vehicles as a key part of its sustainable mobility strategy.
The company says the expansion will create additional jobs and help meet growing demand for hybrid vehicles across the U.S. market. Analysts note that Toyota’s focus on hybrid production could set a benchmark for other automotive manufacturers in the transition to greener transportation.
This latest move underscores Toyota’s commitment to hybrid technology and its long-term vision for the U.S. automotive market, combining investment in advanced manufacturing with strategic planning for future mobility solutions.
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