LOUISVILLE, Ky. -- Toyota said Monday that it is investing $1.33 billion to overhaul its sprawling factory in Georgetown, Ky., where the company's Camry sedans are built.
No new factory jobs are being added, but Toyota said the upgrades amount to the biggest single investment ever at one of its existing plants in the United States. The retooling will sustain the existing 8,200 jobs at Toyota's largest plant, where about one-fourth of all Toyota vehicles produced in North America are made, the automaker said.
"This major overhaul will enable the plant to stay flexible and competitive, further cementing our presence in Kentucky," said Wil James, president of the plant, which also assembles the Avalon and the Lexus ES 350.
The updates at the Kentucky plant are part of Toyota's plans to invest $10 billion in the United States over the next five years, Jim Lentz, chief executive officer of Toyota Motor North America, said in a news release.
The Toyota investment has been in the works for years as it gears up for production of the revamped 2018 Camry, long the top-selling car in the U.S. Toyota has said the Camry's new underpinnings were designed four or five years ago and that the factory upgrade is needed to build the new car, which goes on sale late in the summer. The 2018 Camry features a new exterior design, an upgraded interior and a new engine. The plant recently added more than 700 workers to support its release.
"The [production] line itself is being retooled to accommodate this change," Toyota spokesman Scott Vazin said.
Toyota is betting that the changes will solidify Camry's premier sales position. That dominance is under threat from the popularity of SUVs.
"When the 2018 Camry hits the roads later this year, I'm convinced that it will have heads turning," James said Monday.
The automaker said the plans call for updates to equipment at the Kentucky plant to streamline production and for construction of a new paint shop.
James said the upgrades will position the plant "to compete globally for new models, build ever-better cars for our customers now, and enable us to respond quicker and more capably to market demands."
The investment follows the automaker's decision in 2013 to spend $530 million on the plant to begin building the luxury Lexus ES 350 in Kentucky.
Last year, the Kentucky plant produced more than 500,000 vehicles.
State and area officials attended an event Monday at the Georgetown plant to celebrate the automaker's investment.
Kentucky Gov. Matt Bevin said Toyota's investment is "further proof of their commitment to producing American-made cars."
"Thank you for this investment," Bevin said. "Words don't even begin to fully express the gratitude that the commonwealth of Kentucky has for Toyota, for your investment, for your partnership."
Kentucky economic development officials sweetened Toyota's existing incentive agreement with the state as a result of its latest investment.
State officials added up to $43.5 million in tax incentives, making Toyota eligible for up to $190 million in incentives that span multiple projects. The performance-based incentives allow Toyota to keep a portion of its investment through corporate income tax credits and wage assessments by meeting job retention and new capital investment targets, state officials said.
Business on 04/11/2017