President Trump’s threats that the taxes form the imported vehicles, especially y from Mexico will be high. In the last days he uses his favorite social media Twitter to send the messages to the producers about what will happened if they not bring back production to the United States.
Toyota was among the other auto makers who got the message. Even weeks before his inauguration Trump tweeted on 5th of January: ‘’Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax’’.
After yesterday president Trump’s meeting with the Detroit auto makers CEO’s, when he openly ask of them to support U.S. production and opening jobs, Toyota made an announcement that it will invest $600 million at its Princeton factory.
Toyota increasing production capacity of the Highlander midsize crossover
Toyota increasing production capacity of the Highlander midsize crossover, so the $600 million investment in its Princeton factory is mainly directed to this vehicle, but it will be also used for modernization of the plant for the model which will come in next generation. ‘’The investment will be used for retooling, new equipment and advanced technologies to make the plant more competitive,” Toyota said.
However, start of the project is not expected earlier than late 2019, said company in the statement, but what I important that it will produce new 400 jobs, and it will increase its annual capacity for Highlanders by 40,000 units. “This announcement shows Toyota’s commitment to continued U.S. investment. This expansion is part of Toyota’s localization strategy to build vehicles where they are sold,” company stated.
The Princeton factory is also producing the Sienna minivan and the Sequoia large SUV. Last year production was highest from the start 20 years ago. More than 400,000 vehicles was came off from the production line last year, and not all the units are sold in U.S. Some is produced for export. But Toyota also have an import from Mexico, small cars made by Mazda and sold under the Toyota brand.