Toyota announced today that it will invest $461 million in its 35-year-old Kentucky manufacturing plant (TMMK). The money will go towards facility enhancements, expanding powertrain capabilities, and a direct-hire program.
The plant will be given new advanced manufacturing equipment and technologies, while the facility’s layout will be improved for improved operational speed and flexibility. These improvements are being made with a view to expanding the plant’s ability to produce new products, which includes future electrification efforts.
Powertrain capabilities will also be increased with a 2.4-liter turbocharged engine line for a range of vehicles in North America. Finally, the plant will hire workers directly, rather than through a third party, in an effort to help recruiting efforts and retain talent. Toyota’s workers are not currently represented by the United Autoworkers Union.
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“As Toyota’s most experienced assembly plant in the U.S. with a workforce of about 9,000, TMMK must transform physically and strategically to meet the changing needs of customers,” said Susan Elkington, president of TMMK. “I am confident in our highly skilled team members who drive us forward every day as we prepare for the future of advanced manufacturing, whatever the products might be.”
The plant will continue to build the Camry, Camry Hybrid, and the RAV4 Hybrid. Production of the Lexus ES and the Lexus ES Hybrid will shift away from the facility to consolidate manufacturing in Japan before the next major model change.
“Expanding TMMK’s powertrain capabilities and product mix supports our growing North America manufacturing footprint and commitment to build where we sell,” says David Rosier, head of TMMK Powertrain. “The 2.4T engine line will give us more flexibility to offer a full portfolio of products, meeting current and future customer demand.”
Since 2017, Toyota has invested $1.3 billion in its Kentucky operation. That money has gone largely to equipping the factory to build the Toyota New Global Architecture platform and a new paint operation. This latest project is expected to be finished in 2025.
