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Toyota investing $750M, adding 600 jobs at 5 U.S. plants

BUFFALO, W.Va. — Toyota on Thursday announced it is investing an additional $750 million at five U.S. plants that will bring nearly 600 new jobs, including the production of two hybrid vehicles for the first time at its Kentucky facility. It marks yet another expansion of the Japanese automaker's U.S. presence, bringing to nearly $13 billion the amount it will spend by 2021. The latest investments are at facilities in Alabama, Kentucky, Missouri, Tennessee and West Virginia. Those same facilities were part of a 2017 announcement by Toyota for a $374 million investment to support production of its first American-made hybrid powertrain. Toyota Motor North America CEO Jim Lentz said the latest investments "represent even more examples of our long-term commitment to build where we sell. By boosting our U.S. manufacturing footprint, we can better serve our customers and dealers and position our manufacturing plants for future success with more domestic capacity." Toyota's Georgetown, Kentucky, facility will get a $238 million infusion to produce hybrid versions of Lexus ES 300 sedans starting in May and the Rav4 SUV starting in January 2020, the company announced. It also includes $288 million to increase annual engine capacity at Toyota's Huntsville, Alabama, facility. The plant will add 450 jobs to accommodate new four-cylinder and V6 engine production lines. Last year Toyota and Mazda announced plans to build a $1.6 billion joint-venture plant in Huntsville that will eventually employ about 4,000 people. Toyota also is spending $62 million on equipment to boost production of Toyota and Lexus cylinder heads at its Bodine Aluminum facility in Troy, Missouri, as part of its cost-saving New Global Architecture production strategy to share common parts and components among different vehicles. A $50 million expansion and equipment upgrade at its Bodine plant in Jackson, Tennessee, will add 13 jobs and produce engine blocks while doubling the capacity of hybrid transaxle cases and housings. And Toyota will add 123 jobs and spent $111 million to expand its plant and purchase equipment in Buffalo, West Virginia, to double the capacity of hybrid transaxles. Previously, Toyota also announced a $600 million investment at its Princeton, Indiana, plant to increase the capacity of its Highlander SUV and to incorporate the new production strategy, and $170 million to launch the 2020 Corolla on a new production line in Blue Springs, Mississippi.

Toyota's Lentz says fuel cells are the future, not EVs

Toyota is not bullish on EVs. That comes from the company's North American CEO, Jim Lentz, who said the company will focus not on electrification, but on continued hybridization with a long-term focus on hydrogen fuel cells.
Lentz questioned the long-range ability of EVs, saying that Toyota feels "there are better alternatives, such as hybrids and plug-in hybrids, and tomorrow with fuel cells." Lentz spoke about Toyota's focus on hydrogen following Forbes Brainstorm Green conference and barely a week after a battery deal between Tesla and Toyota ended, according to Automotive News.
That deal provided for 2,500 battery packs for the Rav4 EV. While valuable to Toyota, the deal "was never about open-ended volume," Lentz said. "It was time to either continue or stop. My personal feeling was that I would rather invest my dollars in fuel cell development than in another 2,500 EVs."

How Toyota's 100-year textile history influenced FCV hydrogen fuel cell car

Turns out, Toyota had a surprising ace in the hole when it came to building the new fuel tanks for the FCV hydrogen fuel cell car, which is coming next year. Well before Toyota became the Toyota Motor Company, it was the Toyota Industries Corporation and it made textile looms. This is important because the main structure of the hydrogen tank is wound carbon fiber. When Toyota set out to increase the strength of the tanks to hold hydrogen stored at 10,000 psi (up from 5,000 in the previous tanks), it was able to draw on its 100-year-old history as it designed its car of the future. "A lot of that textile experience came back when we did the tank wrapping." – Justin Ward "We have a lot of experience with textiles," Justin Ward told AutoblogGreen at the 21st World Congress on Intelligent Transport Systems (ITS) in Detroit this week, "and a lot of that textile experience came back when we did the tank wrapping." On top of being able to hold the higher-pressure hydrogen, Toyota's first attempt to build its own hydrogen tank was six times faster than the industry standard, so it saved time and money as well as working better. The company will also be able to inspect its own tanks. Ward is the general manager of powertrain system control at the Toyota Technical Center and hydrogen vehicles are something he knows a lot about. The reason for the stronger, 10,000-psi tanks is because the 5,000-psi tanks only offered around 180-200 miles of range, even with four tanks in the early $129,000 FCHV Highlander hydrogen prototypes. The FCV only has two, but they will able to deliver the 300-mile range that customers told Toyota they wanted. Dropping the number of tanks not only obviously reduced the cost for the tanks themselves but also the number of valves and hoses and other components you need. Despite the benefits of higher compression, going much higher doesn't make sense. 10,000 psi is the "natural progression," Ward said, because "you start to bump up against compression inefficiencies." Think of an air compressor. When hydrogen is produced at a wastewater treatment plant or a reforming site, Ward said, is it at around ambient pressure (14 psi). That has to be raised, using compressors, all the way to 10,000 psi. "That takes energy," Ward said, "and every doubling of pressure adds another doubling of energy needed, so it starts to add up pretty fast if you go too high." Component specifications are also fine at 10,00 psi, but more difficult at higher levels.