Toyota Will Invest $600m and Add 400 Jobs at Indiana Assembly Plant

Company - Pavan Pandey - Jan 25,2017

Rating -

stars - based on 21 reviews

toyota will invest 600m dollars and add 400 jobs at indiana assembly plant

The latest announcement from Japanese automotive company, Toyota Motor Corp., comes after US president Trump criticized the company for its plan to open a factory in Mexico.

Toyota Motor Corp. stated that the jobs were part of a $600 million upgrade of company’s plant in Princeton, Indiana, and were part of its plans declared earlier this month to invest $10 billion in its United States operations over the coming five years.

According to the Toyota Manufacturing Indiana Inc. (TMMI), the development in Indiana will accelerate production of the Toyota Motor Corp.’s Highlander, which is the second-best-selling sports utility and mid-size SUV in the United States, by 40,000 units per year. The Indiana assembly plant presently employs approx. 5100 employees.

During his campaign, US President Donald Trump criticized Ford Motor Co.’s ideas to shift small-car construction to Mexico. Since winning the US election, he has criticized Germany’s BMW AG, General Motors Co. and Toyota by name for manufacturing vehicles or new plants south of the border and importing them into the United States. Mr. Trump mentioned in a tweet that Japanese automaker, Toyota should build their factory in the US or else pay a hefty border tax.

The US president has earlier preferred a 35% border tax on imported cars and also guaranteed to renegotiate the NAFTA (North American Free Trade Agreement) with Canada and Mexico to endorse a “buy American and hire American” strategy.

Last year, Toyota Motor Corp. manufactured approximately 1.4 million automobiles in the United States. It controls 10 plants in the country, including the plant in Princeton, Indiana which new Vice President Mr. Mike Pence visited while he was the state governor.

The Japan-based automaker also operates a pickup truck assembly factory in Mexico and is building a second site in the country, where the automaker plans to manufacture the Corolla sedan.