Production of the Toyota Camry at the automaker’s Georgetown, Kentucky, plant.
Courtesy of Toyota
Toyota engine announced Monday that it would spend $1 billion on two U.S. factories as part of a domestic investment plan of up to $10 billion over the next five years.
The new investments include $800 million at a factory in Georgetown, Kentucky, to increase production capacity for the automaker’s Camry sedan and RAV4 crossover. The remaining $200 million will be used to increase capacity of the Toyota Grand Highlander SUV at a factory in Princeton, Indiana.
“Toyota’s investment in the United States is long-term and ties into our philosophy of building where we sell and buying where we build,” Mark Templin, chief operating officer of Toyota Motor North America, said in a statement.
Toyota confirmed in November that it plans to invest up to $10 billion in its U.S. factories by 2030. That came about a month after President Donald Trump said during a speech that such an investment would come from the Japanese automaker.
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Toyota and the entire auto industry have tried to manage their production plans amid tariffs and other regulatory changes.
Changing trade deals and tariffs have been a major problem for automakers under the Trump administration, costing many companies billions of dollars a year in additional costs. Toyota previously warned that U.S. tariffs were expected to cost the automaker 1.4 trillion yen for its fiscal year, which ends at the end of this month.
Toyota Chairman Akio Toyoda, whose company employs nearly 48,000 people in the United States, has tried to win over Trump, including donning a red “Make America Great Again” hat and a T-shirt featuring Trump and Vice President JD Vance at a November event in Japan attended by U.S. officials.
Toyota was also the first Japanese automaker to embark on a plan to export U.S.-produced vehicles to Japan, following changes to the country’s vehicle import rules reached last year as part of a trade deal with the Trump administration.