Toyota Makes Huge Strategy Shift to Consolidate EV Production in Kentucky

Toyota gave workers the news at both factories last week, and suppliers were notified yesterday. The automaker was expected to build a new three-row electric SUV at the Indiana plant and another, similar vehicle in Kentucky, which would be built alongside a new Subaru model.

Toyota still has its multi-billion-dollar battery factory under construction in North Carolina, and the move to consolidate EVs in Kentucky clears room in Indiana to boost Grand Highlander production. The extended three-row SUV has outsold the shorter Highlander so far this year and has seen increasing sales over the last few months.

The automaker confirmed the move in a statement to Automotive News: “To improve manufacturing efficiencies and better serve customers based on market demand, Toyota is strategically transitioning production across its plants in Kentucky and Indiana. As previously announced, Toyota plans to produce two all-new, three-row battery electric SUVs in the U.S. Toyota will now assemble both vehicles at Toyota Kentucky. Toyota Indiana will continue to assemble the Grand Highlander in its west plant and add assembly of the vehicle to its east plant to accommodate increased production volume. We remain committed to providing long-term job stability for our team members.”

[Images: Toyota]

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