Steel Markets
Toyota Announces Further Investment in U.S. Operations
Written by Sandy Williams
March 21, 2019
Toyota hopes to prevent becoming a victim of auto tariffs by investing in its U.S. operations. The company has increased its 2017 pledge to invest $10 billion by 2021 to a new target of $13 billion. Toyota’s announcement last week includes $750 million for capacity increases and building expansions at Toyota’s plants in Huntsville, Ala., Buffalo, W. Va., Troy, Mo. and Jackson, Tenn. These investments will result in nearly 600 new jobs.
“We’ve been part of the cultural fabric in the U.S. for over 60 years,” said Chris Reynolds, Toyota Motor North America’s chief administrative officer for manufacturing and corporate resources during a press call on March 14. “In a time when others are scaling back, we believe in the strength of America.”
Although concerned about possible tariffs on auto imports by the Trump administration, Reynolds says expansion decisions are based on market fundamentals. “Our investment cycles go beyond any particular political cycle. We need to make decisions based on what we think the market needs rather than the policy direction of the moment,” Reynolds said. “All of this activity, I hope, shows that we’re a plus factor to the economic national security of the United States.”
“By boosting our U.S. manufacturing footprint, we can better serve our customers and dealers and position our manufacturing plants for future success with more domestic capacity,” said Jim Lentz, CEO for Toyota Motor North.
Toyota has 10 manufacturing plants in the United States employing more than 37,000 people. The company, in a joint venture with Mazda, is building a $1.6 billion manufacturing facility in Huntsville that will create 4,000 new jobs and start production in 2021.
Last year the company sold 2.2 million vehicles in the United States, placing it second in sales with a market share of 12.9 percent, according to data from GoodCarBadCar.
Sandy Williams
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