Related: Toyota Indiana Produced its One-Millionth Hybrid Vehicle
Toyota Invests $912 Million Into Hybrid Production
Toyota expands hybrid capacity across five U.S. plants as demand grows, adding jobs and new production lines to support its latest investment in American manufacturing.

A Toyota team member works on hybrid powertrain components as the automaker invests nearly $1 billion across five U.S. plants to expand hybrid production and add more than 250 jobs.
Photo: Toyota
Toyota is increasing its U.S. manufacturing capacity for hybrid vehicles as part of its broader plan to invest up to $10 billion in the country over the next five years. The company announced a $912 million investment across five U.S. plants, creating 252 new jobs and adding hybrid-electric Corolla production to its lineup.
“Customers are embracing Toyota’s hybrid vehicles, and our U.S. manufacturing teams are gearing up to meet that growing demand,” said Kevin Voelkel, senior vice president of manufacturing operations.
The new funding expands Toyota’s powertrain and hybrid-component capacity at plants in West Virginia, Kentucky, Mississippi, Tennessee, and Missouri. The announcement follows Toyota’s long-standing approach to “build where we sell” by reinvesting profits into U.S. operations.
Breakdown of Investments by State
Toyota West Virginia – $453 million, 80 jobs
The Buffalo, West Virginia plant will expand assembly of 4-cylinder hybrid-compatible engines, sixth-generation hybrid transaxles, and rear motor stators. Production on the new operations begins in 2027. The facility currently assembles more than one million engines, transmissions, and hybrid transaxles annually and represents a $3.3 billion total investment.
Toyota Kentucky – $204.4 million, 82 jobs
Toyota’s Georgetown, Kentucky plant will add an all-new machining line for 4-cylinder hybrid-compatible engines. Production on the new line begins in 2027. With the capacity to assemble up to 700,000 units annually, the facility employs nearly 10,000 people and is Toyota’s largest global plant.
Toyota Mississippi – $125 million
Toyota’s Blue Springs, Mississippi plant will begin producing the hybrid-electric Corolla—the first time the electrified model will be assembled in the U.S. The plant employs 2,400 workers.
Toyota Tennessee – $71.4 million, 33 jobs
The Jackson, Tennessee casting plant will add three production lines to increase output of hybrid transaxle cases, housings, and engine blocks. The expansion increases capacity by nearly 500,000 units annually, with production starting in 2027 and 2028. The plant represents a $497 million investment to date.
Toyota Missouri – $57.1 million, 57 jobs
Toyota’s Troy, Missouri casting plant will add a new cylinder head production line for hybrid vehicles. The line, launching in 2027, will boost capacity by more than 200,000 units annually. The plant’s total investment now stands at $629 million.
Supporting U.S. Electrification and Workforce Development
Toyota’s latest investments support its goal of allocating up to $10 billion toward U.S. manufacturing over five years. Today, North American plants assemble more than 75% of the vehicles Toyota sells in the United States.
Nearly half of Toyota’s U.S. sales now come from electrified models, including hybrids, plug-in hybrids, and battery-electric vehicles.
“We’re proud of our plant’s continued growth and honored to help lead Toyota’s transition into a mobility company,” said Alivia Luikart, team member at Toyota West Virginia.
Toyota is also investing in future workforce development. Through its $110 million Driving Possibilities initiative, the Toyota USA Foundation is expanding STEM-focused programs and resources for PreK–12 students, aiming to help close educational gaps and support future mobility careers.
More Vehicle Research

Commercial Fleet Sales Rebound 16.9% Through October
October's stronger results lifted commercial fleet sales growth to 6.7% through the first 10 months of 2026.
Read More →
Which Vehicles Earn Your Fleet’s Vote? Voting Opens for 2027 Fleet Vehicle of the Year
Which vehicles earn your fleet’s vote? Cast your ballot to unlock early access to our analysis of ownership costs across 55 vehicle nameplates.
Read More →
Crash Tests, Catalytic Converter Theft & Fleet Safety | AF News Recap
A stolen catalytic converter can cost a fleet far more than the replacement part. This week, we're exploring how to reduce theft-related risk, what fleet managers learned from live IIHS crash testing, the 2027 Jeep Compass's new safety features, and why supporting original industry reporting matters.
Read More →
2027 Jeep Compass Adds Standard Driver-Assistance Features, Starts at $31,985
The 2027 Jeep Compass adds standard adaptive cruise control across the lineup, along with additional technology and equipment options on select trims.
Read More →
2027 Subaru Outback Adds Base Trim, Lowers Pricing Across Lineup
The 2027 Outback starts at $32,995, with price reductions on several trims and expanded availability of hands-free driver-assistance technology.
Read More →
2027 Toyota Camry Offers Hybrid Powertrain Across Five Grades
The 2027 Toyota Camry is a carryover with new pricing.
Read More →
Chevrolet Updates 2027 Trax and Trailblazer with More Standard Safety Features
Chevrolet is updating two of its smallest SUVs with added driver-assistance technology, redesigned interiors, and revised trim options. The changes could add more safety equipment as standard for commercial fleets, while a new Trailblazer configuration adds another all-wheel-drive option.
Read More →
Hall of Fame Inductee: John Dmochowsky
The longtime Mondelēz International fleet executive joins the Automotive Fleet Hall of Fame.
Read More →
Hall of Fame Inductee: Lee Miller
After more than four decades at Boehringer Ingelheim, Lee Miller leaves a legacy built on fleet expertise.
Read More →
Hall of Fame Inductee: Mark F. Petersen
From managing fleets of thousands of vehicles to advancing safety and mentoring fellow professionals, Mark F. Petersen made his mark across both the corporate and supplier sides of fleet.
Read More →