Toyota Is Investing Another $1 Billion in the U.S. It Has Nothing to Do with EVs

Toyota Motor Corp. TM +2.95% ▲ has announced that it will spend $1 billion to increase production at two U.S. manufacturing plants.

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The investment is part of a broader plan by Toyota to invest up to $10 billion in its U.S. operations over the next five years, and comes months after U.S. President Donald Trump said that the automaker would increase its manufacturing in America.

The newest investment includes $800 million to expand a plant in Georgetown, Kentucky that makes the Toyota Camry sedan and RAV4 crossover vehicles. The remaining $200 million is to increase manufacturing of the Toyota Grand Highlander SUV at a plant in Princeton, Indiana.

Toyota’s U.S. Operations

“Toyota’s investment in the U.S. is for the long-term, tied to our philosophy of building where we sell and buying where we build,” said Toyota’s North America Chief Operating Officer (COO) Mark Templin in a news release.

President Trump has been encouraging foreign manufacturers to invest in America, and Toyota responded last November by announcing plans to invest $10 billion in its U.S. plants through 2030. The global automotive industry has been navigating tariffs and shifting production plans as they move away from electric vehicles (EVs) in favor of gasoline-powered autos.

TM Stock Price Movement

As the chart below shows, Toyota Motor’s stock has risen 7% over the past 12 months. The automaker’s share price has trailed the broader market over that period of time, with the benchmark S&P 500 having gained 15% in the last year.

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