Toyota invests $1 billion to increase US production in Kentucky, Indiana

toyota motor It announced Monday it would spend $1 billion in two U.S. factories as part of a plan to invest up to $10 billion domestically over the next five years.

New investments include $800 million in a factory in Georgetown, Kentucky, to increase production capacity for the Camry sedan and RAV4 Cross. The remaining $200 million is allocated to increase the capacity of the Toyota Grand Highlander four-wheel drive vehicle at a factory in Princeton, Indiana.

“Toyota’s investment in the United States is for the long term, and is tied to our philosophy of building where we sell and buying where we build,” Mark Templin, Toyota Motor North America chief operating officer, said in a statement.

Toyota in November confirmed its plans to invest up to $10 billion in its US factories through 2030. This came about a month after President Donald Trump said during a speech that such an investment would come from the Japanese automaker.

Toyota and the entire auto industry are trying to navigate production plans amid tariffs and other regulatory changes.

Changing trade deals and tariffs have been a major issue for automakers during the Trump administration, costing many companies billions of dollars annually in additional costs. Toyota previously warned that US tariffs are expected to cost the automaker 1.4 trillion yen for the fiscal year that ends at the end of this month.

Toyota Chairman Akio Toyoda, whose company employs nearly 48,000 people in the United States, has been trying to woo Trump, including by wearing a red “Make America Great Again” hat and a T-shirt bearing images of Trump and Vice President J.D. Vance during a November event in Japan that included U.S. officials.

Toyota was also the first Japanese automaker to commit to a plan to export U.S.-produced cars to Japan following changes to the country’s auto import rules reached through a trade deal last year with the Trump administration.