Grand Highlander production expands to both lines at Toyota’s Indiana plan.
EV manufacturing consolidated at Kentucky facility for efficiency.
Highlander sales drop 51% while Grand Highlander sales increase 10 % in early 2024.
Toyota will move production of a planned three-row electric vehicle to its Georgetown, Kentucky, assembly plant, allowing its Indiana facility to increase output of the popular gasoline and hybrid-powered Grand Highlander crossover.
The changes were shared with employees at Toyota’s U.S. production plants and with suppliers on June 23. The decision was made in response to current U.S. EV market trends and consumer demand for three-row crossovers.
Previously, Toyota had intended to produce one three-row EV in Indiana and another in Kentucky, alongside a Subaru-developed counterpart. The automaker had invested $1.4 billion into its Princeton, Indiana, facility to support EV production. However, both EV models will now be assembled at the plant in Georgetown. Battery supply for these vehicles will come from Toyota’s upcoming $13.9 billion battery facility in North Carolina.
The Indiana plant will now focus exclusively on Grand Highlander production, expanding output to both its west and east production lines. Toyota said the move will improve manufacturing efficiency and better match market demand.
Toyota stated: “To improve manufacturing efficiencies and better serve customers based on market demand, Toyota is strategically transitioning production across its plants in Kentucky and Indiana.”
The Grand Highlander has posted stronger sales than the smaller Highlander in the U.S. since re-entering the market after a stop-sale linked to a side airbag issue. Through May, Grand Highlander deliveries rose 10 % to 53,842 units, while Highlander sales fell 51% to 24,985 units. Canadian sales are more modest, with the Highlander still edging out the Grand Highlander, though deliveries were up 80.5 % in May for its best results ever.
The two three-row EVs planned for production in Kentucky are expected to go on sale in late 2025. Toyota has not released further technical or design details.
Source: Automotive News
