As the world’s second largest automaker, Toyota maintains operations around the globe and employs nearly 350,000 people. Over a third (135,900) of Toyota’s global employment is in its U.S. facilities.
The Center for Automotive Research (CAR) recently completed an analysis of Toyota’s economic contribution to the U.S. economy, as well as the economies of 19 individual states—including Kentucky. The study demonstrates a decades-long commitment from Toyota to produce vehicles, employ workers, and contribute to the tax base of both the country as a whole and the many states where the automaker has a presence.
Toyota’s presence and history over the past 30 years in Kentucky is an excellent illustration of how the company’s U.S. activities benefit individual states and communities.
Toyota directly employs 9,400 workers in its Kentucky facilities, which include an assembly plant (7,690), Toyota Motor Engineering & Manufacturing N.A. (TEMA) headquarters (1,060), Toyota Logistical Services (130), and a parts distribution center (520); also, 23 Toyota dealerships directly employ 1,100 people. Overall investment by Toyota throughout its Kentucky facilities totals $6.2 billion.
The centerpiece of Toyota’s presence in Kentucky is Toyota Motor Manufacturing Kentucky, Inc. (TMMK) in Georgetown. TMMK is the largest manufacturing facility outside of Japan, producing over 450,000 vehicles in 2015. Today, the plant produces the Camry/Camry Hybrid, Avalon/Avalon Hybrid, and the Lexus ES350.
Toyota’s presence in Kentucky also supports numerous additional jobs throughout the state. In addition to its 10,500 direct employees, Toyota supports 8,500 jobs at automotive suppliers in the Bluegrass State. Combined with supported spinoff jobs in other industries, Toyota is estimated to support 29,700 jobs in Kentucky. This economic activity results in an annual financial contribution of over $1.3 billion to the state’s economy via disposable personal income.
Toyota’s positive impact on Kentucky is not limited to its employment and financial contributions. The company has long since been a leader in environmental sustainability as applied to both its products and the manufacturing facilities that produce them. In Kentucky, Toyota has been recognized by the U.S Environmental Protection Agency as an Energy Star Partner of the Year the past 12 years.
On an international level, Toyota produced vehicles, such as the Mirai, that use advanced technologies to reduce the environmental impact of driving. The Mirai was named 2016 World Green Car at the New York International Auto Show.
In addition, Toyota’s execution as a leader in manufacturing efficiency raises the bar for suppliers. Their supplier development efforts teach companies to perform at world-class levels; benefiting organizations within and outside of the Toyota supply chain.
To date, Toyota has donated over $700 million to nonprofit organizations in the United States—including $69 million in 2015. That same year, Toyota reported nearly $7 million in philanthropic activity in Kentucky.
The positive impact Toyota’s operations have had on the people and the economy of the state of Kentucky serves as a perfect illustration of the company’s commitment to supporting American jobs and the U.S. economy.
CAR’s full study, Contribution of Toyota Motor North America to the Economies of Nineteen States and the United States in 2015, may be found on the CAR website at http://www.cargroup.org.
Dr. Jay S. Baron is president and CEO of the Center for Automotive Research.
The Center for Automotive Research, a nonprofit automotive research center, has performed detailed studies of the contribution of the automotive industry and its value chain in the U.S. economy for more than 35 years.
CAR’s mission is to conduct independent research and analysis to educate, inform and advise stakeholders, policy makers, and the general public on critical issues facing the automotive industry, and the industry’s impact on the U.S. economy and society.