Nov 18, 2025 - Business

Toyota to ramp up U.S. hybrid production

Joann Muller

Red Toyota Corolla hybrid sedan car parked on a city street near modern glass buildings with streetlights and traffic signals visible. — Toyota is shifting production of its Corolla hybrid from Japan to the U.S., part of a $10 billion commitment to expand its U.S. manufacturing operations. Photo courtesy of Toyota

Toyota plans to move production of hybrid Corolla sedans from Japan to the U.S., a $912 million investment that will add some 250 manufacturing jobs across five states.

Why it matters: The announcement is part of Toyota's recent commitment to invest up to $10 billion in the U.S. over the next five years.

About half of the vehicles Toyota sells in the U.S. are built here (76% are built in North America, counting Canada and Mexico).

Between the lines: Toyota currently imports around 50,000 Corolla hybrids a year from Japan, which now face a 15% tariff under a new U.S.-Japan trade agreement.

Now those cars will instead be assembled at Toyota's Blue Springs, Mississippi factory, which will get a $125 million upgrade.
Four other Toyota factories in West Virginia, Kentucky, Tennessee and Missouri will add jobs to produce more hybrid-related components.

What they're saying: "Customers are embracing Toyota's hybrid vehicles, and our U.S. manufacturing teams are gearing up to meet that growing demand," said Kevin Voelkel, senior vice president, manufacturing operations.

"Toyota's philosophy is to build where we sell, and by adding more American jobs and investing across our U.S. footprint, we continue to stay true to that philosophy."

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Toyota to ramp up U.S. hybrid production

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