- Toyota invests $10bn in U.S. over 5 years
- New NC battery plant creates 5,100 jobs
- Total U.S. investments hit $60bn milestone
The Japanese automotive giant Toyota has revealed a plan to invest a whopping $10 billion in the American market in the next five years. The primary objective of these investments is to increase manufacturing capacity and create new jobs. This new investment, in fact, brings Toyota's aggregate investments in the U.S. to about $60 billion since the company first arrived there and almost 70 years ago, emphasizing how the automotive leader keeps its promises in the long run to the American market.
Moreover, this announcement was made practically at the same time as the unveiling of a brand-new lithium-ion battery factory located in the USA, primarily intended for electric and hybrid vehicles. North Carolina is the location for this 11th plant that the automaker has in the country. With an investment of nearly $14 billion, the facility is expected to generate up to 5,100 new jobs, as per the reports by the Associated Press. This extension signifies Toyota's move to align with the latest trend of clean energy vehicles amid the worldwide increase of demand for electrified vehicles.
Also Read: Toyota to Invest Up to $13 Billion in Expanding US Operations
Toyota's investment announcement is very much in line with the comments made by U.S. President Donald Trump who, among other things, pointed out that Toyota had plans to build new automobile assembly plants at multiple states. Toyota initially brushed aside the idea of a $10 billion investment and now the company has come out to confirm it. Besides, Toyota is also open to the idea of shipping automobiles made in its U.S. facilities to Japan, provided that certifications and regulatory standards are met on both sides.
The stage for this event comprises the ongoing trade negotiations between the U.S. and Japan. The two sides in July agreed on a deal, which saw Japan committing to $550 billion investment in the US while getting a reduction in tariffs on Japanese automobiles. Though some U.S. tariffs remain in place, Toyota has just upgraded its operating income and net profit forecast for the current fiscal year, indicating that the company is in good financial shape. On the Tokyo Stock Exchange, Toyota's shares were slightly down by 0.1%, closing at 3,187 yen.