Thursday, 22 June, 2017

Toyota announces $1.33 billion investment in Kentucky plant

Toyota unveiled an all new Prius that's expected to get about 55 miles per gallon and be Toyota announces $1.33 billion investment in Kentucky plant
Alfredo Watts | 19 April, 2017, 07:12

Japanese carmaker Toyota will invest $1.33 billion in the development of its plant in Kentucky in the United States, the company said. Instead of emphasizing cost efficiency, Toyota is highlighting ample spending and the previously announced addition of 700 jobs. The first vehicle that will incorporate the new technology will be the 2018 Camry. The Georgetown plant will be the first North American facility to use TNGA, starting with the 2018 Camry. Currently, the same plant manufacturers the Toyota Avalon and Lexus ES 350, though-pending official word from Toyota-this may change depending on the scale of the investment. "This major overhaul will enable the plant to stay flexible and competitive".

Toyota on Monday announced a $1.33 billion investment in Kentucky as part of the company's plan to invest $10 billion in the USA over the next five years.

Toyota said that no new jobs will be added to the facility. The motion marks the highest investment of any automaker in Kentucky and the second-largest in state history.

Company spokesman Rick Hesterberg says despite the huge price tag, the investments are for equipment upgrades, engineering work, and new tooling, not for new capacity or products in Kentucky. It manufactures the Toyota Camry model, and Lexus models.

Toyota's arrival in the United States ushered in a movement by USA automakers to duplicate its just-in-time inventory management system, which required suppliers locate within about 400 miles of an assembly plant. More than 500,000 vehicles rolled off the Georgetown line in 2015.

With seven Japanese auto parts companies in the area, including TBDN, Toyota Boshuku and UGN, Jackson has emerged as a center for Toyota parts production since 1986, when the automaker opened the Georgetown plant.

In the release, US Senate Majority Leader Mitch McConnell (R-Kentucky) congratulated the company, "especially its thousands of hard-working Kentuckians". Three properties at Lanes Run Business Park, totaling almost 22-acres, as well as $1 million for future land purchases, are being donated to further advance the vision for the area.

Marking its 10th anniversary in Northeast Mississippi this year, Toyota Mississippi has scheduled an "exciting announcement about our community involvement" on Thursday. Toyota said Monday, April 10, 2017, it is investing $1.3 billion to retool its sprawling Georgetown factory, where the companys flagship Camry sedans are built.

Toyota partners with community, civic, academic, and governmental organizations to address a number of challenges facing society today, including the future of mobility and transportation. For more information about Toyota, visit www.toyotanewsroom.com. The meeting's goal, according to an email from the Cabinet for Economic Development "is to consider a Kentucky Jobs Retention Act Supplemental project in Scott County", where TMMK is located.