Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Toyota to invest $10 billion in U.S. over five years

Published 09/01/2017, 20:30
© Reuters. The 2018 Camry XSE and XLE are introduced during the North American International Auto Show in Detroi
TM
-

By David Shepardson

DETROIT (Reuters) - Toyota Motor Corp (T:7203) will invest $10 billion (£8.2 billion) in the United States over the next five years, the same as in the previous five years, North America Chief Executive Jim Lentz said on Monday, to meet demand and upgrade plants to build more fuel-efficient models.

The Japanese automaker has come under fire by President-elect Donald Trump for its plans, announced in 2015, to shift production of its Corolla to Mexico from Canada.

Lentz said in an interview at the Detroit auto show the decision was not in response to Trump's remarks made in a recent tweet, but was part of Toyota's business strategy to invest in the United States, where it has 10 plants in eight states.

Planning for the new Mexico plant began about two years before it was announced in 2015, said Lentz, describing such decisions as long-term ones.

Lentz said he had not spoken with Trump.

The $10 billion includes Toyota's new North American headquarters in Texas that is under construction and major improvements to its plants.

Toyota plans to expand some of its U.S. plants over the next five years, said Lentz, declining to say if that effort would boost jobs. Toyota, which employs 40,000 in the United States, added more than 5,000 U.S. jobs over the last five years, he said.

Toyota President Akio Toyoda appeared at the show later on Monday to tout the company's investment plans and its updated flagship Toyota Camry that is built in Kentucky.

"We are deeply grateful to the millions of customers who have made Camry the number one selling car in America for the last 15 years," Toyoda said.

Lentz said "everyone" agrees with Trump's goals of boosting manufacturing and U.S. employment, in part because "it helps us sell more cars."

"We have to run our business as a global business," he said. "I have to make sure that we are competitive."

The company is focussed on reminding policymakers in Washington about its extensive U.S. manufacturing operations, Lentz said.

Lentz said Vice President-elect Mike Pence, who was Indiana governor, knew Toyota well because of its manufacturing operations in the state.

He warned that a "border adjustability tax," like the one proposed by Trump if the carmaker builds the Corolla in Mexico instead of the United States, could hike the price of cars and hurt auto employment.

Such a tax could add $1,000 to cost of a Kentucky-built Camry because of some foreign-made parts.

© Reuters. The 2018 Camry XSE and XLE are introduced during the North American International Auto Show in Detroi

After the critical tweet from Trump, "you have to respectfully state your position and then move on," he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.