• Toyota will invest $1.3 billion in its Kentucky plant to build 3-row electric SUV.
Toyota may not be the most aggressive when it comes to electrification, but it’s not wearing blinders either. The auto giant is well aware that certain EV segments are likely to be highly coveted over the next few years.
One of these is the three-row SUV segment. Consumer interest in anything with seven seats and electric range is very strong.
The Japanese automaker announced yesterday that it will be investing $1.3 billion in its American plant in Kentucky, in order to assemble a three-row electric SUV.
What's a little ironic is that while Toyota is announcing this kind of investment, others have stepped back to take advantage of the higher profits guaranteed by hybrid and gasoline models. We've even seen GM mention that it will be bringing back plug-in hybrid solutions. Electrification is expensive.
The new investment comes on top of what Toyota has already announced for its Kentucky plant, where electrification is becoming increasingly important. In all, Toyota has poured some $10 Billion in investments into the facility in recent years.
A battery assembly line will also be added to the plant, supplied by North Carolina-based Toyota Battery Manufacturing.
“We are grateful that they continue to invest in our commonwealth,” said Kentucky Governor Andy Beshear in reference to Toyota.
The Kentucky plant employs some 9,400 workers and assembles up to 550,000 vehicles a year, including the Camry sedan. The factory is of major importance to Toyota in North America, to say the least.