Toyota Invests $106 Million in Alabama Engine Plant

Toyota announced nearly $374 million in investments on Tuesday at five manufacturing operations, including $106 million at the Toyota Motor Manufacturing Alabama plant in Huntsville.

Toyota said the $106 million will drive the next-generation engine production using Toyota New Global Architecture (TNGA) to completely replace the current four-cylinder engine line at the only Toyota plant in the world that produces four-cylinder, V-6, and V-8 engines under one roof.

TNGA is a new approach to the way Toyota designs, engineers, and produces its vehicles, Toyota said. While retaining traditional values such as exceptional quality and safety, the advanced engines produced using TNGA will have increased power performance, efficiencies, and fuel economy.

“This $106 million investment will enable us to stay competitive globally, build ever-better engines, and respond quicker and more capably to market demands down the road,” said David Fernandes, president of BCA-member Toyota Alabama. “Continued investment in this plant speaks directly to the quality and dedication of our people, as well as the local and statewide partnerships we’ve developed. It also further cements our commitment to Alabama.”

Tuesday’s announcement brings Toyota’s investment in its Huntsville facility to $970 million since 2001. It is part of Toyota’s plan to invest $10 billion in its U.S. facilities over the next five years. That’s on top of the nearly $22 billion Toyota has invested in the U.S. over the past 60 years.

“Toyota has once again shown confidence in the men and women of Alabama’s workforce with their announcement of the $106 million investment going to the Huntsville plant,” Governor Kay Ivey said. “We are very grateful that Toyota remains a valued partner to Alabama. This announcement further solidifies the automaker’s long-term commitment to our great state.”

Toyota Alabama is the automaker’s largest engine facility globally, producing more than 702,000 engines for the Camry, RAV4, Highlander, Tacoma, Tundra, and Sequoia in 2016. In fact, one-third of the engines in North American-built Toyota vehicles were produced in Alabama. The plant currently produces about 3,000 four-cylinder, V-6, and V-8 engines each day.

The upgrade will create 50 new jobs. A recent study by the Center for Automotive Research shows that Toyota Alabama supports 9,700 direct, indirect, and spin-off jobs across the state.

The other $267.8 million in investments were announced Georgetown, KY., West Virginia, Troy, Missouri, and Jackson, Tenn.