Japanese automaker Toyota’s American division, Toyota Motor Engineering & Manufacturing North America (TEMA), is planning to invest $200m to increase V6 engine machining capacity and parts production in three North American plants.
As part of the plan, Toyota will invest $150m in its V6 engine facility in Alabama and $50m in Bodine Aluminium casting plants in Missouri and Tennessee, which marks carmaker's ninth manufacturing investment in North America over the past two years that now reaches $2bn.
TEMA president and CEO Osamu Nagata said, "Today's investment of $200 million into three separate Toyota facilities demonstrates Toyota's commitment to North America and our localization efforts."
The investment in Alabama plant represents the Japanese automaker's fifth major new spending since its commissioning a decade ago and brings overall investment to $850m following the anticipated completion of machining project by July 2015.
Alabama facility currently assembles 4-cylinder, V6 and V8 engines for eight models assembled in North America.
Bodine Aluminum will produce blocks and cylinder heads for engines built at the Alabama facility, while it also mahufactures cylinder heads and blocks to Toyota's engine plants in Kentucky and West Virginia.
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