According to a press release from Toyota Motor Corporation, the Japanese company is investing $88 million into its Buffalo, West Virginia, engine facility to expand production of hybrid transaxles, reinforcing its commitment to U.S. manufacturing as trade tensions escalate.
This investment aims to increase the plant’s annual hybrid transaxle output by over 25%, from 480,000 to 609,000 units, by late 2026. These components are crucial for Toyota’s hybrid models, including the Camry, Corolla Cross, Highlander, Sienna, and select Lexus vehicles.
The Buffalo facility, which began transaxle production in 2020, is Toyota’s first North American plant to manufacture these components. The current expansion will maintain the employment of approximately 2,000 workers but will not create new jobs.
This move comes as the Trump administration prepares to implement a 24% tariff on imported auto parts, effective May 3, targeting countries including Japan. Toyota’s investment is seen as a strategic effort to mitigate potential tariff impacts and strengthen its U.S. manufacturing presence.
In the first quarter of the year, Toyota’s U.S. hybrid sales surged by 40% year-over-year, with hybrids accounting for over half of all deliveries. The RAV4 Hybrid remains one of the company’s top-selling models.
This latest investment brings Toyota’s total investment in the Buffalo plant to over $2.8 billion, underscoring its long-term commitment to U.S. manufacturing and the growing hybrid vehicle market.
