Toyota will invest $126M to expand powertrain operations image

Toyota announced today that it will invest $126 million in the expansion of its powertrain operations in Ann Arbor and also in the consolidation of its vehicle development operations at a new facility close to York Township, Michigan.

This plan is taking place after Toyota decided to relocate a number of operations around the United States after its decision to move its North American headquarters from California to Texas. Around 85 jobs will also be moved from Toyota’s powertrain facility in Gardena, California to Ann Arbor by the end of 2016.

This investment adds to Toyota’s $28 million expansion of the Ann Arbor powertrain operations which were announced in September 2013. They would make it possible for Toyota to develop additional engines and automatic transmissions for cars that are designed and built in North America.

Toyota stated that centralizing their vehicle development and powertrain functions in Michigan would benefit the company in its response pace to marketplace changes while it would also allow the auto brand to improve the speed at which it can offer technology advances to its customers.

In 2013 Toyota announced plans to move around 300 production engineering employees from Erlanger to Georgetown, where Toyota would build a new office place from which the staff would manage production engineering projects for all Toyota plants. According to a statement from the car maker, all the new facilities are to be completed by 2017.

By Gabriela Florea