$912 Million Toyota hybrid production investment Will Create 252 U.S. Jobs

In a major move to solidify its electrification strategy, Toyota has announced a significant $912 million commitment to expand its U.S. manufacturing base. The Toyota hybrid production investment will create 252 new jobs across five manufacturing plants and is part of the automaker’s recent pledge to invest up to $10 billion in the U.S. over the next five years.

This move underscores Toyota’s confidence in the hybrid market, where sales now account for nearly 50% of the company’s total U.S. volume. The investment is intended to localize production of critical components, ensuring the company can meet the “growing demand” for its fuel-sipping vehicles.

Here is the breakdown of how the funds will be allocated across the five states.

Luke Sharrett/Bloomberg via Getty Images

Plant-by-Plant Investment Breakdown

The $912 million is being strategically distributed to strengthen the entire hybrid supply chain, from raw casting and component machining to final transaxle assembly.

Plant Location	Investment Amount	Key Project Details	New Jobs
West Virginia (Buffalo)	$453 Million	Increase production of hybrid engines, 6th-gen transaxles, rear motor stators.	80
Kentucky (Georgetown)	$204.4 Million	All-new machining line for 4-cylinder hybrid-compatible engines.	82
Mississippi (Blue Springs)	$125 Million	Enables US production of the Corolla Hybrid (First electrified Corolla built in U.S.).	N/A
Tennessee (Jackson)	$71.4 Million	New casting lines for hybrid transaxle cases and engine blocks.	33
Missouri (Troy)	$57.1 Million	New production line for hybrid cylinder heads.	57

Note: The new production lines are scheduled to begin launching in phases between 2027 and 2028.

toyota revamps its biggest car plant for hybrid suvs 996689 — Source: Luke Sharrett/Bloomberg via Getty Images

The Multi-Pathway Strategy

This massive Toyota hybrid production investment confirms the automaker’s continued reliance on a multi-pathway strategy, prioritizing hybrids as the practical bridge technology for the masses.

Localizing the Corolla Hybrid: The $125 million injected into the Blue Springs, Mississippi, plant is critical, as it allows Toyota to manufacture the popular Corolla Hybrid locally for the first time. This localization helps the company manage supply chain risks and aligns with its philosophy to “build where we sell.”
Vertical Integration: The focus on component plants in West Virginia, Tennessee, and Missouri ensures vertical integration. By manufacturing core parts like hybrid transaxles and engine blocks internally, Toyota gains greater control over quality and cost.

president trump announces new reciprocal tariffs on dozens of nations 996688 — Source: Jay L Clendenin/Getty Images

Context: A Hybrid-First Future

The announcement comes just a week after Toyota opened its first U.S. battery plant in North Carolina. By following up that $13.9 billion battery commitment with a $912 million component and assembly expansion, Toyota is signaling a balanced electrification strategy.

While competitors scale back on pure EV investments due to cooling demand, Toyota is doubling down on the technology consumers are actually buying today. This strategic Toyota hybrid production investment secures the automaker’s dominance in the segment for the next decade, ensuring high-demand models like the hybrid-only Camry and RAV4 remain well-stocked at dealer lots.

Also Read – Next-Gen Hyundai 400 kW EV charging Tech Developed in Germany