Toyota's First U.S. Vehicle Plant Shifts Transformation into High Gear
Toyota has announced a significant $461 million investment in its Georgetown, Kentucky plant (TMMK) aimed at enhancing operations and meeting changing customer demands. This investment focuses on facility upgrades, expanding powertrain capabilities with a new 2.4-liter turbo engine line, and implementing a direct hire program for 1,400 workers. The changes will support vehicle production flexibility and future electrification efforts. With a total planned investment exceeding $8.5 billion by 2025, TMMK is positioned to strengthen its North American footprint amidst increasing competition.
- Investment of $461 million to enhance facility operations.
- New 2.4-liter turbo engine line to diversify product range.
- Direct hire program to improve employee retention and inclusivity.
- Total investment in TMMK projected to exceed $8.5 billion by 2025.
- Production of Lexus ES and ES Hybrid will shift back to Japan, reducing local output.
GEORGETOWN, Ky., Oct. 29, 2021 /PRNewswire/ -- You might think Toyota Kentucky (TMMK) has seen it all during its 35-year history. But today, Toyota announced a series of changes and projects that will boost the Georgetown plant's transformation to meet shifting customer demand, reduce its carbon footprint and advance future capabilities.
A new investment of
- Facility Enhancements and Operational Upgrades: Advanced manufacturing equipment and technologies, coupled with facility layout improvements, will increase the plant's operational speed, flexibility and competitiveness. These improvements will expand TMMK's ability to produce new products, including future electrification.
- Expansion of Powertrain Capabilities: TMMK's powertrain operation will increase its product mix with a 2.4-liter turbo engine line. The new line will support an expanded range of vehicles produced in North America, further increasing the plant's flexibility to quickly meet an evolving market.
- Direct Hire Program: The plant is changing its employment structure to a direct hire process. Approximately 1,400 variable team members, currently employed through Kelly Services, will be offered a direct Toyota position, along with all new hires. TMMK is among other Toyota plants across the U.S. to implement the change to help improve recruiting efforts, retain top talent and provide a more inclusive work environment.
"As Toyota's most experienced assembly plant in the U.S. with a workforce of about 9,000, TMMK must transform physically and strategically to meet the changing needs of customers," said Susan Elkington, president of TMMK. "I am confident in our highly skilled team members who drive us forward every day as we prepare for the future of advanced manufacturing, whatever the products might be."
TMMK will continue to build the best-selling Camry, Camry Hybrid and RAV4 Hybrid. To help create space for future products and to better align with U.S. market demand, production of the Lexus ES and Lexus ES Hybrid will shift from the facility and consolidate production back to Japan prior to the next major model change.
"Expanding TMMK's powertrain capabilities and product mix supports our growing North America manufacturing footprint and commitment to build where we sell," says David Rosier, head of TMMK Powertrain. "The 2.4T engine line will give us more flexibility to offer a full portfolio of products, meeting current and future customer demand."
In 2006, Toyota debuted its first U.S. manufactured hybrid electric vehicle at the Kentucky operation. The most recent electrification milestone announced TMMK's powertrain plant as the site for assembling fuel cell modules for use in hydrogen-powered, heavy duty commercial trucks starting in 2023.
"Kentucky's automotive industry is growing at a record pace, and Toyota Motor Manufacturing Kentucky is at the center of that growth," said Kentucky Governor Andy Beshear. "Toyota changed the landscape of manufacturing in our state when the Georgetown facility first opened more than 30 years ago, and now the company is preparing for growth. I am thrilled that future will include Kentucky in a significant way."
TMMK's transformation began in 2017 with a
The Georgetown site is also home to Toyota's Production Engineering Manufacturing Center (PEMC) and the Manufacturing Production Innovation Center (MPIC), which spearheads mobility transformation initiatives, technologies and advanced processing initiatives for the company's 14 North American manufacturing facilities.
About Toyota
Toyota (NYSE:TM) has been a part of the cultural fabric in the U.S. for more than 60 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our nearly 1,500 dealerships.
Toyota has created a tremendous value chain and directly employs more than 36,000 in the U.S. The company has contributed world-class design, engineering, and assembly of more than 30 million cars and trucks at our 9 manufacturing plants, 10 including our joint venture in Alabama that begins production in 2021.
To help inspire the next generation for a career in STEM-based fields, including mobility, Toyota launched its virtual education hub at www.TourToyota.com with an immersive experience and chance to visit many of our U.S. manufacturing facilities. The hub also includes a series of free STEM-based lessons and curriculum through Toyota USA Foundation partners, virtual field trips and more. For more information about Toyota, visit www.toyotanewsroom.com.
Media Contact:
Kim Ogle
256-714-3633
Kim.ogle@toyota.com
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SOURCE Toyota Motor North America
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