Toyota Assigns Second Electric Vehicle to Kentucky Plant

Toyota Motor Corporation will invest US$1 billion in its assembly plants located in Kentucky and Indiana to expand both the volume and diversity of models in the U.S. market.

This amount is part of the Japanese automaker’s commitment made last year to invest US$10 billion in its U.S. operations by 2030.

The bulk of the investment, $800 million, will go to the Kentucky facility, which is Toyota’s largest manufacturing complex worldwide and was celebrating the 40th anniversary of the start of its construction at the time of the announcement.

This capital injection will provide the plant with the necessary resources to produce its second battery electric vehicle (BEV), following the launch of the new Toyota Highlander, whose fifth generation will be a zero-emission model unlike its predecessors.

According to a Reuters report, this second model will also be an SUV based on either the RAV4 or the Land Cruiser. However, industry sources speculate that it will simply be a more luxurious version of the Highlander, to be marketed under the Lexus brand.

The investment to be received by the plant located in Georgetown County will also allow it to increase production capacity for the Camry and the RAV4, its best-selling model in the U.S. market, which is currently assembled only in Canada.

The remaining $200 million, which will be allocated to the complex located south of Princeton, Indiana, will be used to increase production volume of the Grand Highlander, one of the brand’s most popular SUVs.

This vehicle, which is assembled at the western plant alongside the Lexus TX, will now also begin rolling off the assembly line at the eastern plant alongside the popular Sienna minivan.