Toyota Motor Corp. is reorganizing the production program for its Georgetown, Ken., complex, and plans to locate assembly for two new, battery electric vehicles there. One model reportedly will be an electric crossover vehicle, comparable to the gas-powered RAV4; and the other is understood to be an EV equivalent to the Toyota Land Cruiser.
Toyota also will add production for its new Grand Highlander SUV, at Princeton, Ind.
Increasing its U.S. production volume may work for Toyota as a hedge against import tariffs, particularly for EV components. Last month the group cut its 2025 profit forecast citing the additional cost of tariffs on its operations.
But additionally, the new production strategy together with other recent investments underscore Toyota’s commitment to electric vehicle programs. Previously, the automaker has emphasized hybrid vehicles more than battery-powered EVs.
Two years ago, Toyota pledged $8 billion to build a new plant in Greensboro, N.C., for hybrid and EV battery production. That same year, Toyota committed $591 million to update the Kentucky plant, in preparation for new EV production there.
Early in 2024, Toyota committed to a $1.3-billion capital investment program at Georgetown in anticipation of a new e-SUV and a new battery pack assembly line. Later it pledged $1.4 billion for an EV assembly line at Princeton.
In the new Georgetown production plan, Toyota will discontinue assembly of the Lexus ES sedan, meaning the Lexus TX SUV will be the only Lexus vehicle produced in the U.S., at Princeton, Ind. This also implies that the new ES sedan will be produced only in Japan, though the automaker has not confirmed that detail.
