Toyota is doubling down on its American manufacturing footprint with a substantial $912 million investment that will create 252 new jobs across five U.S. plants. The move comes as consumer demand for hybrid vehicles continues to surge, prompting the Japanese automaker to expand production capacity in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri.
The investment represents a significant portion of Toyota’s broader commitment to pump up to $10 billion into U.S. manufacturing over the next five years. This latest expansion will boost hybrid component production and bring hybrid-electric Corollas to American assembly lines for the first time.
Kevin Voelkel, senior vice president of manufacturing operations at Toyota, emphasized the company’s philosophy of building vehicles where they’re sold. The strategy reflects growing consumer appetite for electrified vehicles, which now account for nearly half of Toyota’s U.S. sales.
The largest single investment heads to West Virginia, where Toyota’s Buffalo plant will receive $453 million and add 80 jobs. The facility will ramp up production of 4-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles, and rear motor stators. Production is slated to begin in 2027, with the plant already assembling more than one million engines, transmissions, and hybrid transaxles annually.
Toyota’s Georgetown, Kentucky facility, the company’s largest plant globally, gets $204.4 million and 82 new positions. The investment will fund an all-new machining line for 4-cylinder hybrid-compatible engines, expected to come online in 2027. The Kentucky plant employs nearly 10,000 workers and has a production capacity of up to 700,000 powertrain units annually.
Mississippi’s Blue Springs plant receives $125 million to add hybrid-electric Corolla production. This marks a milestone as the first time electrified Corollas will be assembled on U.S. soil. The facility currently employs 2,400 workers and represents a $1.3 billion investment to date.
In Tennessee, the Jackson casting plant will gain $71.4 million and 33 jobs to increase production of hybrid transaxle cases, housings, and engine blocks. Three new production lines will boost capacity by nearly 500,000 units annually, with production starting in 2027 and 2028.
Toyota’s Troy, Missouri casting plant rounds out the investment with $57.1 million and 57 new jobs. A new cylinder head production line for hybrid vehicles will increase plant capacity by more than 200,000 cylinder heads annually when production begins in 2027.
The timing of this expansion aligns with shifting consumer preferences toward electrified vehicles. Toyota has pursued what it calls a multi-pathway powertrain approach, offering hybrids, plug-in hybrids, and fully electric vehicles. The strategy appears to be paying off as electrified vehicles now make up approximately 50 percent of the company’s U.S. sales.
Currently, Toyota assembles about half of the vehicles it sells in the United States domestically. When factoring in North American manufacturing facilities, that figure jumps to 76 percent. The new investments will further strengthen this local production capability.
Team members at the affected plants have expressed enthusiasm about the expansion. Alivia Luikart, who works at Toyota West Virginia, noted pride in the plant’s continued growth and the role it plays in Toyota’s evolution into a mobility company.
Toyota’s commitment to American operations extends beyond factory floors. The Toyota USA Foundation recently launched Driving Possibilities, a $110 million initiative focused on PreK-12 education. The program aims to close educational gaps through hands-on STEM learning while addressing fundamental needs of students and families.
The announcement has drawn praise from political leaders across the affected states. Governors and congressional representatives from West Virginia, Kentucky, Mississippi, Tennessee, and Missouri have welcomed the investment as validation of their states’ business climates and workforces.
The expansion comes at a critical time for American automotive manufacturing, as the industry navigates the transition toward electrification. Toyota’s substantial commitment to U.S. production and hybrid technology suggests confidence in both the American workforce and the continued demand for hybrid vehicles as a bridge technology in the shift away from traditional internal combustion engines.
Lloyd Tobias is a seasoned automotive journalist and passionate enthusiast with over 15 years of experience immersed in the world of cars. Whether it’s exploring the latest advancements in automotive technology or keeping a close pulse on breaking industry news, Lloyd brings a sharp perspective and a deep appreciation for all things automotive. His writing blends technical insight with real-world enthusiasm, making his contributions both informative and engaging for readers who share his love for the drive. When he’s not behind the keyboard or under the hood, Lloyd enjoys test driving the newest models and staying ahead of the curve in an ever-evolving automotive landscape.
