Toyota
is to start production of engines and transmissions for the popular Lexus RX 300
sport utility vehicle at its Buffalo, West Virginia powertrain plant in 2003.
"This will mark the first time Lexus has produced engines outside Japan,"
said Tag Taguchi, president and CEO of Toyota Motor North America.
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"This decision shows the high level of confidence Toyota has in the outstanding
West Virginia team members."
Last year, Lexus was the number one selling luxury brand in the United States
for the first time ever. Timing for Lexus engine and transmission production
will coincide with the RX 300 vehicle production move to Toyota’s Cambridge,
Ontario plant in Canada in 2003, marking the first time Lexus models have been
built outside Japan.
Toyota will invest an additional $US50 million for equipment and tooling to
accommodate Lexus V6 engine and automatic transmission production, as well as
to expand capacity of the four-cylinder line at the Buffalo plant by 40,000
engines annually. The four-cylinder line will add production for Toyota’s new
Matrix, just introduced at the Detroit auto show, and for the GM Vibe, both
to be produced at New United Motor Manufacturing in Fresno, California. Combined
four-cylinder and V6 engine capacity will grow to 540,000 annually.
Employment is projected to climb to 1,000 by 2003 and investment will grow
to $US950 million. Before the announcement, made today, maximum employment was
projected to be 800. This is the third time Toyota has expanded TMMWV since
the original plant was announced in 1996. Current employment at the Buffalo
plant is 725.
TMMWV has steadily increased production since building its first four-cylinder
engine in December 1998. In 2000, the plant produced 192,069 four- cylinder
and 98,140 V6 engines. Production of automatic transmissions begins later this
year. In 2003, TMMWV will produce engines for five North American-built vehicles.
They are: Corolla, Matrix, Sienna, RX 300 and Vibe.
Overall, Toyota employs more than 30,000 in North America, with investment
of more than $US11 billion. The company now makes eight vehicles in the U.S.
and Canada. With today’s announced expansion of TMMWV, Toyota’s engine capacity
in North America will exceed one million.
