NEW YORK/TOKYO — Toyota Motor will invest $803 million to produce two new sport utility vehicles at its assembly plant in the U.S. state of Indiana, touting its plan’s job creation and environmental benefits.
The two new SUVs — one a Toyota, the other a Lexus — will seat up to eight passengers and feature hands-free driving in some situations, Japan’s most valuable listed company said Wednesday.
A week after U.S. President Joe Biden hosted an international climate change summit, Toyota played up the Indiana plant’s contributions to cutting carbon dioxide emissions.
“This investment and new vehicle lineup will allow us to continue our work with electrification, expand our portfolio to about 70 models globally by 2025, and meet the needs of our customers while we accelerate toward carbon neutrality,” Ted Ogawa, CEO of Toyota Motor America, said in a statement.
The announcement comes after Toyota reported a 44% year-on-year jump in global auto sales for March, tallying a single-month record of 982,912 vehicles. North America was a driver of this gain, along with China, the world’s biggest auto market.
Sales for the fiscal year ended in March fell 4% to 9.08 million autos.
The new U.S. investment will create 1,400 jobs in Princeton, Indiana, and mark the production debut of the Lexus luxury brand at the plant, which is nearing its 25th anniversary, according to Toyota.
More details on the two new models are to follow.
