Toyota moving electric SUV production from Indiana to Kentucky
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Toyota is making changes to its plans to produce two new electric SUVs, affecting a major investment previously announced for its facility in Gibson County.
Last year, Toyota announced plans to invest $1.4 billion to produce a new electric vehicle at the Toyota Motor Manufacturing Indiana plant in Princeton and create 340 jobs. At the time, the automaker did not specify what type of EV would be assembled at the Indiana facility, but did note that one three-row electric SUV was already slated to be produced at its plant in Georgetown, Kentucky.
On Thursday, however, Toyota Motor North America spokesperson Stacy Carr confirmed to Inside INdiana Business that production of electric SUVs will now be assembled in Kentucky.
Carr said a large part of the $1.4 billion investment involved the construction of a new battery-pack assembly plant in Princeton. Ground was broken on that project earlier this year and is moving forward on schedule, she said.
Toyota did not specify precisely how much of the original investment was going toward the battery-pack project, and Carr said more details regarding how many new jobs are planned for the site will be announced at a later date.
The Princeton facility currently produces the Grand Highlander, Highlander, Sienna Hybrid, Highlander Hybrid, Lexus TX models.
The automaker plans to increase its assembly of the Grand Highlander by adding an assembly line in its east plant building in Princeton to accommodate increased production volume. Carr said there will be investments associated with the increased production but a specific dollar figure was not provided.
Gibson County Economic Development Corp. CEO Tami Hack declined to comment on the move when contacted by IIB.
When the $1.4 billion investment was first announced, the Indiana Economic Development Corp. said it was offering Toyota up to $5 million in incentive-based tax credits and up to $1 million in conditional structured performance payments.
The IEDC did not immediately respond to a request for comment on any potential changes to the incentive package as a result of the change in production locations.
Toyota Indiana employs more than 7,600 people at the plant in Princeton, making it the 18th-largest employer in Indiana, according to IBJ research.
Last month, the plant celebrated the assembly of 1 million hybrid vehicles.