Toyota Motor Corp. is intending a $200-million investment to increase the production capacity for its V-6 engine machining and parts in North America, according to Toyota Motor Engineering and Manufacturing North America Inc. The latest announcement means that Toyota’s total committed investment over the past two years to over $2 billion.
The latest set of investments will allow the carmaker to create 50 new jobs across several plants. The carmaker is planning to invest $150 million at Toyota Alabama engine plant and $50 million for its Bodine Aluminum unit.
The investment will result to the creation of 40 new jobs at Bodine’s Troy site in Missouri and 10 more at its Jackson plant in Tennessee. The unit will produce blocks and cylinder heads for Toyota Alabama. The Toyota Alabama engine plant assembles V-6, V-8 and 4-cylinder engines for eight of the 12 Toyota vehicles built in North America.
The Toyota Alabama engine plant is also the only Toyota site in the world to build the three engines in the same location.
The carmaker disclosed in May that it plans to hike the site’s production capacity by 216,000 engines annually. With the expansion, the site is now expected to be able to build nearly 750,000 engines a year, 362,000 of which will be V-6 powerplants.
Toyota is logging strong sales growth in pickup and SUV segments this year in the United States, with the Detroit 3 still dominating the pickup sector. According to Automotive News Data Center, Toyota Division posted a 12-percent surge in light truck sales in the first five months of 2013 to 324,570 vehicles, majority of which were powered by V-6 engines. [source: Toyota]