In order to take advantage of excess engine-making capacity at its U.S. factory, Toyota will shift more 4-cylinder engine production from Japan to Alabama.
According to Automotive News, Toyota will spend about $147 million to add 216,000 4-cylinder engines annually to the mix at its Huntsville, Alabama plant. The plant currently makes V6 and V8 engines for Toyota’s light-trucks. The expansion is expected to add 240 jobs at the plant.
The extra 4-cylinder engines produced will go into Camrys built in Indiana and Rav4 compact SUVs built in Woodstock, Ontario. Engines for both models have been coming from Japan until now.
The move is expected to help Toyota cut $9.42 billion in global costs in the current fiscal year that began April 1.
– By: Stephen Calogera