Toyota’s First U.S. Vehicle Plant Shifts Transformation Into High Gear

• Facility Enhancements and Operational Upgrades: Advanced manufacturing equipment and technologies, coupled with facility layout improvements, will increase the plant’s operational speed, flexibility and competitiveness. These improvements will expand TMMK’s ability to produce new products, including future electrification.
• Expansion of Powertrain Capabilities: TMMK’s powertrain operation will increase its product mix with a 2.4-liter turbo engine line. The new line will support an expanded range of vehicles produced in North America, further increasing the plant’s flexibility to quickly meet an evolving market.
• Direct Hire Program: The plant is changing its employment structure to a direct hire process. Approximately 1,400 variable team members, currently employed through Kelly Services, will be offered a direct Toyota position, along with all new hires. TMMK is among other Toyota plants across the U.S. to implement the change to help improve recruiting efforts, retain top talent and provide a more inclusive work environment.

Toyota is investing US$461 million into its first U.S. plant to add new technology, increase production flexibility and reduce its carbon footprint, the company said Friday in a statement.

The announcement didn't include new jobs at the central Kentucky facility, but officials said 1,400 temporary jobs would be converted into permanent positions in an effort to improve recruiting, retain top talent and provide a more inclusive work environment.

Plans include upgrading the Georgetown plant with advanced manufacturing equipment and technologies that will increase speed, flexibility, and competitiveness, the statement said. That includes improvements to expand the plant's ability to manufacture new electric products.

The company also plans to add a 2.4-liter turbo engine line, which will support expanding the range of vehicles produced in North America.

"As Toyota's most experienced assembly plant in the U.S. with a workforce of about 9,000, TMMK must transform physically and strategically to meet the changing needs of customers," said Susan Elkington, president of Toyota Motor Manufacturing Kentucky.

Kentucky Gov. Andy Beshear praised the announcement and said the state looks forward "to being a part of Toyota's future of electrification."

The plant will continue to build the Camry, Camry Hybrid and RAV4 Hybrid, but production of the Lexus ES and Lexus ES Hybrid will shift back to Japan in 2024.

The plant began its transformation in 2017 with a $1.3 billion investment to equip the facility with the Toyota New Global Architecture manufacturing platform and a new paint operation.

October 30, 2021