Toyota Motor is investing an additional $88 million in its West Virginia factory to produce hybrid transaxles, bolstering its U.S. manufacturing presence amid President Donald Trump’s 25% tariffs on imported vehicles and auto parts.
The Japanese automaker will add an assembly line for hybrid transaxles — crucial drivetrain components that transfer power between engines, electric motors and wheels — at its Buffalo plant. Production is scheduled to begin in the second half of 2026, with components destined for Toyota and Lexus vehicles assembled in North America.
The investment brings Toyota’s total commitment to the West Virginia facility to $2.8 billion and secures jobs for its 2,000-plus workforce. The plant, which also manufactures engines and transmissions, remains the only Toyota facility in North America assembling hybrid transaxles.
“This investment clearly aligns with Toyota’s strategy to build where it sells,” said David Rosier, president of Toyota West Virginia, in a statement Wednesday. The announcement comes as automakers scramble to adjust to Trump’s sweeping tariffs on imported vehicles and parts that took effect earlier this month.
Toyota, which sold more than 2 million vehicles in the U.S. last year, currently produces hybrid components in Japan, the U.S., Europe and China. The company is working to establish complete hybrid production chains from components to final assembly in both American and Chinese markets.
The investment represents another step in Toyota’s broader $25 billion commitment to American manufacturing since 2018, as the company follows its localization philosophy to mitigate import risks and strengthen its position in key markets.
