Japanese automaker Toyota Motor is planning to invest about $102m in its three six-speed automatic transmission assembly facilities in the US to raise the production capacity.
About $90m will be invested in Toyota Motor Manufacturing West Virginia (TMMWV) plant to increase the annual production of 6-speed automatic transmission by about 50% to 740,000 transmissions from 2015.
TMMWV manufacturing and administration senior vice president Millie Marshall said the capacity increase will help in meeting the growing North American demand and is a part of the company's localization strategy to 'build where we sell'.
"This latest investment helps us better serve our North American customers and prepares us for an even brighter future," Marshall said.
Transmissions built by TMMWV will be deployed in Toyota models including Avalon, Camry, Highlander, Lexus RX350, Sienna and Venza.
Toyota would invest the remaining amount at its Bodine Aluminum casting facilities in Missouri and Tennessee, which would allow supplying transmission cases and housing components to the carmaker's West Virginia plant.
According to the carmaker, the latest investment brings the overall manufacturing spending in North America over the past 21 months to $2.1bn.
