Toyota is spending $1.33bn at its Kentucky manufacturing facility as part of its plan to invest $10bn in the US over the next five years.
The move adds to the $530m invested in 2013 to support the production of Lexus.
With the present investment commitment, the total investment in the last four years at the plant is valued at $1.86bn.
The automaker plans to introduce Toyota New Global Architecture (TNGA), which is a new strategy for vehicle design, engineering and manufacturing.
The new architecture is also expected to reduce development cycle for vehicle improvements and new vehicles.
Toyota claims that TNGA will retain the company’s traditional values, while allowing for flexible production environment. This combination of tradition and flexibility is expected to build better cars, respond quicker to consumer demands at the Kentucky plant.
The Kentucky facility of Toyota is considered to be its largest plant in the world, where 8,200 people are employed. Recently, the plant added 700 new jobs to support the upcoming 2018 Camry.
Toyota Motor Manufacturing, Kentucky president Wil James said: "This is the largest investment in our plant's history and it speaks directly to the quality of our people and our products, as well as the partnerships we've forged in the local community and across the state.
"This major overhaul will enable the plant to stay flexible and competitive, further cementing our presence in Kentucky."
In the recent times, automakers in the US have been criticised by Donald Trump during his US Presidential campaign against their investments in Mexico and other countries.
Donald Trump vowed to impose import taxes on automakers who manufacture their vehicles in Mexico and bring them to the US.
This has led several automakers in the US to invest in the country including Fiat Chrysler Automobiles, Honda Motor, Daimler, Ford Motor and General Motors.
After gaining knowledge about Toyota’s investment, US President Donald J. Trump said: "Toyota's decision to invest $1.3 billion in their Kentucky plant is further evidence that manufacturers are now confident that the economic climate has greatly improved under my administration and echoes the recent National Association of Manufacturers' 2017 Outlook Survey showing that 93% of manufacturers are now optimistic, which is an increase of 37% from just a few months ago."
