Toyota Jumps on the Train, Will Invest Big in US Production

After lashing from Trump, manufacturer makes big decision.

byCaleb Jacobs| PUBLISHED Jan 25, 2017 1:20 PM
Toyota Jumps on the Train, Will Invest Big in US Production

This can be considered a good move on Toyota's part for several reasons. Besides the obvious logic of bringing more business to the Indiana locale (employing 400 more workers than before), it also saves them from a possible 35 percent tariff tax implemented by President Trump. $600 million sounds like a lot to spend, but when you consider how many units the company moves in the United States, it's a hefty discount.

The added bankroll will be used to retool and add onto existing plants. These facilities are responsible for producing Highlander, Sequoia, and Sienna Minivan, all of which are growing in popularity. Toyota sold 191,000 Highlanders in 2016, and the additions will allow for 40,000 more per year to be produced. This is part of Toyota's plan to invest $10 billion total in US manufacturing in the next five years.

This should keep Toyota free and clear for a least awhile. It shows their dedication to the American market, employs more people, and keeps President Trump happy. By avoiding the major tax, they save themselves money while also putting more into our economy. Is this a necessary move? It depends on who you ask. Logically, though, it makes financial sense for the automaker.