Toyota provides $1.3B to US manufacturing unit to provide three-row all-electric SUV

Toyota will spend an extra $1.3 billion to organize its Kentucky manufacturing unit for manufacturing of a brand new three-row all-electric SUV designed for U.S. shoppers, the corporate introduced Tuesday. The additional capital pushes Toyota’s complete funding into the manufacturing unit to just about $10 billion and is the most recent instance of the automaker’s renewed pledge to electrification.

Toyota has been criticized in recent times for lagging behind the business’s shift in the direction of battery-electric automobiles. Toyota execs have largely stood by their determination to supply shoppers a blended portfolio of fuel, hybrid, plug-in hybrid and battery electrical automobiles. However final 12 months, the corporate pledged to beef up its EV portfolio with a plan to introduce 10 new battery-powered automobiles by 2026.

The $1.3 billion funding will assist meeting of the all-electric SUV and might be used so as to add a battery pack meeting line. The three-row all-electric SUV is predicted to enter manufacturing in 2025. With regards to market it is going to compete with Kia’s new three-row EV9, which got here to market in late 2023. Mercedes, Rivian, Tesla and Volvo additionally make three-row all-electric SUVs, though all of those are within the premium and luxurious automobile classes and have the value tags to mirror that.

The battery cells might be manufactured at Toyota’s manufacturing unit in North Carolina, one other facility that has obtained further funding from the automaker. Final 12 months, Toyota introduced plans to spend an extra $2.1 billion on the brand new battery plant.

Kerry Creech, president of Toyota Kentucky stated the announcement displays the corporate’s dedication to automobile electrification and additional reinvesting in its U.S. operations.

Prior to now three years, the corporate has introduced new investments totaling $17 billion into its U.S. manufacturing operations to assist electrification efforts.

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