Japanese giant automobile manufacturer, Toyota said it will invest $600 million at its Princeton, Ind., plant to increase production capacity for the Highlander midsize crossover and retool and modernize the factory for the next-generation model.
The project won’t begin until the fall of 2019. The early announcement on Tuesday, January 24, is intended to signal the company’s commitment to U.S. production amid threats from President Donald Trump to slap tariffs on vehicle imports, particularly from Mexico.
The investment will create 400 jobs as the Princeton plant and increase its annual capacity for Highlanders by 40,000 units, Toyota said. The Sienna minivan and the Sequoia large SUV are also made at the plant.
Toyota said the Princeton plant produced more than 400,000 vehicles last year, the highest in its 20-year history, amid strong demand for SUVs. The plant also exports some vehicles.
Toyota sold 191,379 Highlanders in the U.S. last year, a 20 percent increase over 2015. All of those Highlanders were made in the U.S.
The third-generation Highlander made its debut at the Indiana plant in 2013 and was mildly refreshed for the current model year. Pictured is the 2017 Highlander.
The third-generation Highlander made its debut at the Indiana plant in 2013 and was mildly refreshed for the current model year.
The investment for the current and next-generation Highlander “will be used for retooling, new equipment and advanced technologies to make the plant more competitive,” Toyota said.
Toyota’s only current auto plant in Mexico is in Tijuana, where it makes the popular Tacoma midsize pickup truck. That plant is currently undergoing a $150 million expansion to increase capacity to about 160,000 trucks a year from its current 100,000.
