IN: Toyota to Consolidate Highlander Production to Princeton Plant, Add More Than 400 Jobs
9 Feb, 2012
Toyota Motor Manufacturing Indiana, Inc. (TMMI) announced plans today to expand its operations here, creating approximately 400 new jobs by 2013.
The company will invest $400 million total with $131 million going directly to its Princeton plant to consolidate its Highlander mid-size SUV production to this location, including both hybrid and export versions. Production is expected to begin in late-2013 with annual Highlander production volume expected to increase by approximately 50,000 units at TMMI.
"The Hoosier State has made great strides towards providing the best possible business climate in the nation and having a multi-national company like Toyota consolidate operations to Indiana and produce one of our state's first hybrid vehicles is evidence to the success we've achieved," said Governor Mitch Daniels.
Established in Gibson County in 1996, Toyota's Princeton plant was the second recognized wholly-owned Toyota plant in North America. TMMI currently employs 4,800 associates, of which 4,000 are Hoosiers, and builds the Highlander, Sequoia full-size SUV and Sienna minivan at its Princeton facility. The hiring of new manufacturing associates will coincide with facility and machinery upgrades.
"This project allows for better utilization of the Indiana plant, and will help Toyota capitalize on the improving North American and global auto market," said Steve St. Angelo, executive vice president of Toyota Motor Engineering & Manufacturing North America, Inc. "In addition to new jobs at the Indiana plant, this project will increase opportunities and jobs for our North American supply base."
The Indiana Economic Development Corporation offered Toyota Motor Manufacturing Indiana, Inc. up to $2.7 million in conditional tax credits and up to $200,000 in training grants based on the company's job creation plans. These tax credits are performance-based, meaning until Hoosiers are hired, the company is not eligible to claim incentives. Gibson County will consider additional incentives at the request of the Gibson County Economic Development Corporation.
"Toyota has been an integral part of the Princeton community, not only with the employment of our residents but also with the infusion of millions of dollars into the local community," said Princeton Mayor Robert Hurst. "The company's charitable donations have also been significant with more than $13 million given to local charities and schools and for that we are very grateful."
Toyota (NYSE:TM) established operations in North America in 1957 and currently operates 14 manufacturing plants here. There are more than 1,800 Toyota, Lexus and Scion dealerships in North America which sold nearly 2 million vehicles in 2011. Toyota directly employs more than 35,000 in North America and its investment here is currently valued at more than $23 billion, including sales and manufacturing operations, research and development, financial services and design. Toyota's annual purchasing of parts, materials, goods and services from North American suppliers totals nearly $25 billion. Toyota currently produces 12 vehicles in North America, including the Avalon, Camry, Corolla, Highlander, Matrix, RAV4, Sienna, Sequoia, Tacoma, Tundra, Venza and the Lexus RX 350. For more information about Toyota, visit www.toyota.co or www.toyotanewsroom.com.
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Dan Hasler serves as the chief executive officer of the IEDC.
The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.