Toyota Plans Expansion in West Virginia

Toyota Motor Corp. plans a $50 million expansion of its Putnam County engine and transmission plant to accommodate the Lexus RX 300 and a new vehicle being produced in a joint venture with General Motors.

The expansion is expected to increase plant employment to 1,000 by 2003 and Toyota’s total investment in the Buffalo plant to $950 million. The plant currently employs 725.

Production of V6 engines and transmissions for the RX 300 is expected to begin in 2003, when Toyota moves assembly of the RX 300 to Cambridge, Ont. It represents the first time engines for the popular sports utility vehicle will be produced outside of Japan, said Tag Taguchi, president and CEO of Toyota Motor North America.

Toyota introduced the RX 300 in March 1998 and was Lexus’ best-selling model in 2000 with 89,864 vehicles sold, according to the company’s Web site.

The company also will start producing four-cylinder engines for its new Matrix and the GM Vibe. The Vibe will be produced by New United Motor Manufacturing.

Toyota introduced the Matrix this month at the North American International Auto Show in Detroit. The vehicle will be a hybrid that combines aspects of a sports utility vehicle, a sports car and a subcompact sedan, the Web site said.

This is the third expansion for the Buffalo plant since construction was announced in 1996. The plant started producing four-cylinder engines in December 1998. Production of automatic transmissions will begin this year. By 2003, the plant will be producing engines for the Corolla, Matrix, RX 300 and Vibe.

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