Toyota on Tuesday unveiled a $912 million investment in U.S. plants, most of it going to ramp up hybrid vehicle production in the U.S., an announcement that was overshadowed by CEO Akio Toyoda hosting a red, white and blue NASCAR event in Japan while sporting a Trump-Vance shirt and red MAGA hat.
The investment is part of a previously announced plan to invest up to $10 billion in the U.S. by 2030, which President Trump revealed last month. Most of the investments are expected to be completed by 2027. Toyota already leads hybrid vehicle production with more than 51% market share through the third quarter of this year, according to Motor Intelligence data.
The company is looking to further increase manufacturing of hybrid-compatible engines and vehicles at certain American facilities.
“Customers are embracing Toyota’s hybrid vehicles, and our US manufacturing teams are gearing up to meet that growing demand,” Kevin Voelkel, senior vice president of manufacturing operations, said in a statement.
Political repercussions
Toyoda took note of recent US-Japan trade tensions during his bold display of pro-Trump sentiment but tried to maintain a neural stance the subject of tariffs.
“I’m not here to argue whether tariffs are good or bad. Every national leader wants to protect their own industry,” Toyoda said ahead of the race. But environmental forces were quick to pounce.
“By wearing President Trump’s face on his chest, Chairman Toyoda has shown he will do anything to appease and cozy up to this anti-EV and anti-climate administration, said Adam Zuckerman, senior clean vehicles campaigner with Public Citizen’s Climate Program. "Seventy-five percent of polled Republicans and 90% of polled Democrats who own Toyotas said that the company should support stronger emissions standards—standards that Toyota has worked with Trump to dismantle.”
Electrification Toyota's way
Toyota’s $912 million hybrid-investment announcement is a clear signal that it is scaling up its U.S. manufacturing of electrified vehicles — but the “EV” (battery-electric) portion of that strategy is still under development. But it's important to note that the focus is on “electrified” vehicles (specifically hybrids in this instance) rather than 100 % battery-electric vehicles only.
The $912 million will include expansion at plants in West Virginia, Kentucky, Mississippi, Tennessee and Missouri. Shifting production of hybrid-compatible engines/components to the U.S. helps mitigate import-tariff risks and respond to growing U.S. market demand.
Toyota notes that to date (U.S.) it has sold more than 6.6 million electrified vehicles (hybrid, PHEV, BEV, fuel-cell) in the U.S. since 2000.
It plans to launch two U.S.-made all-electric vehicles (BEVs) in 2025, and expand to seven EV models in the U.S. by mid-2027.