Toyota keeps betting on hybrid vehicles in the US

Toyota announced Tuesday that it will invest $912 million across five U.S. factories to expand its hybrid vehicle production as demand continues to rise.

This new round of spending is part of the automaker’s broader plan to invest up to $10 billion in the United States over the next five years. The move also comes as Toyota, like the rest of the auto industry, navigates shifting market conditions, including tariffs and the expiration of federal EV tax credits.

The investment will be distributed among Toyota facilities in West Virginia, Kentucky, Mississippi, and Missouri, with a focus on expanding production capacity for key components used in hybrid models.

Roughly $125 million will support the U.S. assembly of a hybrid-electric Toyota Corolla, marking the first time this model will be built domestically. The most significant portion of the budget — approximately $453 million — will be directed to Toyota’s plant in Buffalo, West Virginia, where the company will boost output of hybrid-compatible 4-cylinder engines, sixth-generation hybrid transaxles, and stators (rear motor components).