Toyota is spending an extra $1.4 billion on U.S. manufacturing as it looks to ramp up its electric vehicle lineup while qualifying for tax credits.
The new investments will fund the production of three new battery-powered SUVs, all of which will be built at the automaker’s Princeton, Indiana factory. Toyota anticipates hiring an additional 340 workers to support manufacturing ahead of the expansion. The comapny has now spent a total of $8 billion on the Princeton facility, which also builds the Sienna, Lexus TX, Highlander, and Grand Highlander, and employs more than 7,500 workers.
The ramp up of electric vehicle production comes as Toyota’s hybrid lineup spurs substantial demand. Earlier this week, the company revealed it had set an all-time annual sales record for the fiscal year ending in March, surpassing the 10 million unit mark for the first time. Hybrids played a critical role in advancing the company’s market share during the period.
However, Toyota remains well behind other automakers in the manufacturing of fully-electrified vehicles. While its focus on hybrids has helped spur sales, it is also faced without a means to qualify for U.S. EV incentives, which require, among other things, a substantial percentage of a model’s components to be manufactured domestically.
By building the new SUVs in the U.S., Toyota will make its vehicles eligible for these tax credits. The company also plans to use batteries assembled at its North Carolina plant in the upcoming models, further improving its incentive eligibility.
