Georgetown, Kentucky – Toyota announced a massive investment of $1.3 billion in its Kentucky factory for future electrification efforts, marking a surprising shift for the global automaker. The investment will focus on the production of a three-row electric SUV for the US market, although the model remains unnamed. This move comes as Toyota has faced criticism for its resistance to the industry-wide shift to electric vehicles.
The investment will facilitate the creation of an EV assembly line at the Kentucky plant, as well as the assembly of battery packs using batteries from their North Carolina facility. With a total commitment of $17 billion to support the shift to EVs in the US, Toyota aims to establish itself as a key player in the electrified vehicle market.
Despite this significant investment, environmentalists continue to criticize Toyota for its previous anti-EV lobbying efforts around the world. The company, once a pioneer in electrification with the popular Prius, has fallen behind its competitors, offering only two battery-electric vehicles in the US – the Toyota bz4X and the Lexus RZ 450e.
Toyota’s focus on hybrids over pure battery-electric vehicles has been a subject of debate, especially as the US grapples with conflicting reports about the demand for EVs. Toyota’s Chairman and former CEO, Akio Toyoda, emphasized the importance of different paths to achieving carbon neutrality, reinforcing the company’s strategy of prioritizing hybrids.
The potential three-row electric SUV for the US market could be based on the electric Land Cruiser concept unveiled at the 2023 Japan Mobility Show. The concept featured a distinct design with a longer hood, sweeping windshield, and unique taillight design, presenting an innovative take on electric SUVs.
As Toyota makes this significant investment into electric vehicle production, it is clear that the company is embracing the shift towards electrification, positioning itself for a competitive future in the evolving automotive industry.