Toyota invests $1.3 billion in factory to produce new electric SUV amid slowing EV market

Toyota announced plans Tuesday to invest another $1.3 billion in its Georgetown, Kentucky, facility to produce its new electric SUV.

In a recent press release, the automaker unveiled plans to allocate more funds to its flagship plant “for future electrification efforts including assembly of an all-new, three row battery electric SUV for the U.S. market.”

Including its newest commitment, Toyota has invested nearly $10 billion in the factory. It noted that the additional funds will help to reinforce the company’s “commitment to high-quality vehicles and long-term job stability.” The facility employs nearly 9,400 workers.

Its latest investment will support its previously announced battery electric vehicle assembly and an additional battery pack assembly line at the Kentucky factory.

Toyota noted that it has committed $17 billion since 2021 to support electrification efforts.

Kentucky Democratic Governor Andy Beshear thanked Toyota for continuing to invest in the state.

“More good news for our red-hot economy in Kentucky,” Beshear stated in a video posted to X. “This ensures a bright future and steady employment for so many Kentucky families.”

“The fact that we’re going to see EVs being produced at this plant … it shows we are not just going to be an automotive leader, but we want to be the automotive leader,” he added.

Kerry Creech, president of Toyota Kentucky, called the investment a reflection of the automobile manufacturer’s “commitment to vehicle electrification.”

Last month, Toyota Chairman Akio Toyoda spoke out against the push for EVs, Blaze News previously reported.

“No matter how much progress [EVs] make, I think they will still only have a 30% market share. Then, the remaining 70% will be [hybrid vehicles], [hydrogen fuel-cell vehicles], and hydrogen engines,” Toyoda said, according to a NewsMax translation. “[Gasoline] engine cars will definitely remain. This is something that customers and the market will decide, not regulatory values or political power.”

Hertz recently announced that it will cut 25% of its EV fleet, citing high repair costs. The company noted it plans to reinvest in gas-powered vehicles.

Amid the cooling EV market, Volvo Cars reported this month that it will no longer fund electric vehicle sports car brand Polestar Automotive. According to the Swedish automaker, it will instead focus on “developing and concentrating its resources on its own ambitious journey, including its own in-house electric vehicles.”

In November, a coalition of 3,880 automobile dealerships signed an open letter to President Biden (D) urging him to “tap the brakes” on the administration’s “unrealistic” EV mandate, which aims to have 60% of new vehicle sales be EVs by 2030. The car dealers warned that the declining “hope and hype” of EVs have caused the vehicles to start “stacking up on our lots.”

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