Toyota Motor Corp. (TM,TYT.L) said it will invest $10 billion in the U.S. in the next five years. The announcement comes after U.S. President-elect Donald Trump threatened to raise taxes on the Japanese automaker over its plans to build cars in Mexico for sale in the U.S. market.
At the Detroit auto show on Monday, Toyota President Akio Toyoda said, "The Camry has been one of the reasons why we've invested 22 billion dollars in the U.S. over the last 60 years and why we will be investing another 10 billion here ...in just the next 5 years alone."
Toyoda made the announcement while unveiling the 2018 Toyota Camry at Detroit. The Camry is the best selling car in the U.S. for the last fifteen years. The company's investment figure of $10 billion matches its own investments in the U.S. over the prior five years.
However, Toyota added that the announcement predated Trump's threat to penalize the automaker and was not in response to the U.S. President-elect's remarks. The automaker has ten plants in eight U.S. states.
Trump tweeted last week that Toyota would be forced to pay a "big border tax" unless its new Corolla plant is built in the U.S.
"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump tweeted.
While the President-elect said Toyota plans to build the plant in Baja, the $1 billion Corolla factory is actually slated to be built in Guanajuato in central Mexico.
However, Toyota has announced plans to expand its existing plant in Baja to increase production of Tacoma pickup trucks.
Trump had earlier tweeted a similar threat to General Motors Co. (GM), asking the automaker to stop importing cars into the U.S. from Mexico or pay a hefty tax. Ford Motor Co. (F) too had endured scathing criticism from Trump over the company's investments in Mexico.
In response to Trump's criticism, Ford said last week that it is cancelling plans for a new $1.6 billion assembly plant in Mexico. The auto giant will instead build small cars at an existing Mexican factory and intends to invest $700 million in a Michigan facility to manufacture electric cars.
Fiat Chrysler U.S. (FCAU) said Sunday that it will invest $1 billion in its plants in Michigan and Ohio, and add 2,000 new American jobs.
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