Toyota announces $10 billion US investment, bringing total to nearly $60 billion, with new North Carolina battery plant creating 5,100 jobs
TOKYO: Toyota has confirmed plans to invest $10 billion in the United States over the next five years.
The announcement follows earlier comments from President Donald Trump about the Japanese automaker’s investment intentions.
“This will bring the company’s total US investment to nearly $60 billion since beginning operations in the US nearly 70 years ago,” Toyota stated.
The confirmation came alongside the opening of Toyota’s first US factory producing lithium-ion batteries for electric and hybrid vehicles.
The North Carolina facility represents Toyota’s eleventh US manufacturing plant with an investment of nearly $14 billion.
The battery plant is expected to create up to 5,100 new jobs.
President Trump had previously announced the investment during his Asia visit, stating Toyota would build new car plants in numerous states.
Toyota initially responded cautiously to Trump‘s comments, with finance chief Kenta Kon noting difficulty confirming the $10 billion figure.
The investment follows a July agreement where Japan committed to invest $550 billion in the US economy in exchange for reduced tariffs.
US tariffs on Japanese cars were lowered to 15% from a threatened 25%-27.5%.
The Trump administration is also pressuring Japanese automakers to export US-made vehicles to Japan.
Toyota’s head of public affairs Hiroyuki Ueda said the company would consider such exports if certification standards are harmonised.
“Efforts are underway to harmonise Japanese certification standards with those of the United States,” Ueda stated at the Tokyo Mobility Show.
“If these preparations are successful, we would be willing to consider it.”
Bloomberg News reported Toyota imported approximately half of the vehicles it sold in the US last year.
The imports included about 281,000 vehicles manufactured in Japan.
Despite the impact of US tariffs, Toyota recently raised its operating income and net profit forecasts for the current fiscal year.
Toyota shares declined 0.1% to 3,187.0 yen during Thursday’s morning trading session in Tokyo. – AFP
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