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Toyota has announced a $1.4 billion investment to upgrade its factory in Princeton, Indiana, to roll out a brand-new three-row electric SUV.
The new three-row electric SUV being developed in Indiana is distinct from the one Toyota previously planned to build.
According to Indiana’s governor, Eric Holcomb, Toyota’s recent investment in its Princetown facility brings a total amount to $8 billion.
🚗 Exciting news for #Indiana! Toyota's $1.4B investment in their Princeton facility for a new battery electric SUV boosts their total investment to $8B. This expansion further cements #Hoosier's leadership in the future of mobility.https://t.co/ARedcTsDiD pic.twitter.com/VGElvupVts
— Governor Eric Holcomb (@GovHolcomb) April 25, 2024
The company wrote in a statement that this Indiana investment will add 340 jobs to its existing workforce of over 7,500 employees. Currently, the plant manufactures the Toyota Sienna minivan and the Toyota Highlander, Grand Highlander, and Lexus TX SUVs.
Toyota’s Electric Vehicles
Toyota has traditionally been cautious about electric vehicles. Still, this investment signals a huge leap into electrification.
While details about the specific model are scarce, it will likely be a variant of the bZ4X, part of Toyota’s bZ (Beyond Zero) series.
Toyota has joined the all-electric party with the new bZ4X, the first model in a new series of bZ – beyond Zero – battery electric vehicles.
The FWD bZ4X is powered by a 150kW electric motor making 150kW / 265Nm. 0-100 km/h is achieved in 8.4s and has a 160 km/h top speed. pic.twitter.com/uBAubLQwtB
— CarsInPixels (@cars_pixels) October 29, 2021
With the Princeton plant’s battery pack assembly line utilizing cells produced at a $13.9 billion battery plant in North Carolina, Toyota is positioning itself to compete with Tesla, BYD, and Volkswagen in the rapidly evolving EV market.
This move adds significance in light of Tesla’s recent Q1 earnings call, which reported a surprise loss. As one of the pioneers and current leaders in the EV market, Tesla’s struggles raise questions about the financial viability of electric vehicle manufacturing at this time.
Toyota’s investment, however, suggests that the company is bullish on the long-term prospects of EVs. It is willing to invest heavily to secure a strong position in the market. With rumors of user preference tilting towards the hybrid model and the EV manufacturing industry continuing to stagger through the challenges and opportunities of electrification, Toyota’s move may be seen as a vote of confidence in the future of EV manufacturing.
