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Toyota is executing a significant shift in its U.S. electric vehicle (EV) manufacturing strategy, consolidating production of its all-new three-row electric SUVs at its sprawling Georgetown, Kentucky facility. Originally, Toyota had invested heavily in its Indiana plant to launch new EV assembly lines and battery manufacturing. However, the automaker has recently redirected its EV investments, focusing resources on the Kentucky plant to streamline operations and respond swiftly to the fast-evolving EV market.
Streamlining Production for Future Growth
Toyota's decision was communicated to employees at both the Indiana and Kentucky factories, as well as to key suppliers. The company had planned to build a new three-row electric SUV in Indiana and a similar vehicle in Kentucky, with the latter sharing production space with an upcoming Subaru model. By relocating both new EVs to Kentucky, Toyota aims to enhance manufacturing efficiency, leverage cutting-edge EV technology, and optimize supply chain logistics.
EV and Battery Innovation in the U.S.
While Toyota is still constructing its massive battery facility in North Carolina—set to become a cornerstone of the brand's electrified lineup—the strategic focus on Kentucky allows the Indiana plant to ramp up production of the popular Grand Highlander. This generously-sized three-row SUV has recorded impressive sales figures in 2024, outperforming its smaller Highlander sibling and meeting increased consumer demand for spacious family vehicles.
Design, Performance & Market Positioning
The upcoming three-row battery electric SUVs, expected to share Toyota’s latest electrification platform, promise exceptional range, advanced driver assistance features, and family-oriented versatility. Positioned to compete against market rivals like the Kia EV9 and Volkswagen ID. Buzz, these models are set to play a pivotal role in Toyota’s North American electric vehicle portfolio.
Toyota’s Commitment to Customers and Workforce
According to an official statement, Toyota is “transitioning production across its plants in Kentucky and Indiana to improve manufacturing efficiencies and better serve customers based on market demand.” Toyota Indiana will continue Grand Highlander assembly, now expanding capacity across both the west and east plants, ensuring job stability for employees and supporting the brand’s long-term growth in the American SUV market.
By consolidating EV manufacturing in Kentucky, Toyota is taking a decisive step towards strengthening its position in the U.S. EV market, delivering innovation, reliability, and value for drivers nationwide.
Source: thetruthaboutcars
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