Toyota Motor Corp. will invest $88 million into its Buffalo, West Virginia, plant to increase production of hybrid transaxles by late 2026, reinforcing its U.S. manufacturing footprint amid looming import tariffs under the Trump administration.
The Japanese automaker announced Wednesday that the investment will support the assembly of sixth-generation hybrid transaxles, a key component that transfers power between the engine, electric motor, and wheels in hybrid electric vehicles. The expansion will increase annual transaxle output capacity at the facility from 480,000 to 609,000 units.
While the move won’t create new jobs, Toyota says the spending will help maintain the current workforce of more than 2,000 employees and bring the total investment in the West Virginia plant to over $2.8 billion. The plant began producing transaxles in 2020 and remains the only Toyota facility in North America to do so.
“This investment is another example of Toyota’s ‘build where we sell’ philosophy and further proof of the company’s confidence in our team members,” said David Rosier, president of Toyota West Virginia, in the company’s press release. “We’re proud to play a pivotal role in providing customers with various drivetrain options.”
The expansion comes as President Donald Trump moves to impose new tariffs on auto imports, including components from Japan. In response to Trump’s recent remarks, Toyota defended its presence in the U.S. by highlighting that it has made $25 billion in American manufacturing investments since 2018 and invested an additional $28.5 billion to support domestic suppliers.
Hybrid vehicle demand has surged in the U.S., with Toyota’s hybrid sales rising 40% in the first quarter of 2025 compared to last year. Hybrids now account for over half of Toyota’s U.S. deliveries. Transaxles produced in West Virginia are used in models including the Camry, Corolla Cross, Highlander, Sienna, and two Lexus vehicles.
The investment also underscores Toyota’s commitment to workforce development in the region. Toyota West Virginia is donating $100,000 to Marshall University’s Advanced Manufacturing Center to support skills training programs.
“I applaud this major investment into our state,” said West Virginia Governor Patrick Morrisey. “Toyota’s commitment strengthens our workforce and economic future.”
Toyota operates 11 manufacturing plants in the U.S., employing nearly 50,000 workers, including a joint venture facility with Mazda in Alabama. Over 50% of Toyota vehicles sold in the U.S. are assembled domestically.
