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Toyota (TM) Invests $282M to Expand Production in Alabama

Toyota Motor Corporation TM is investing $282 million to expand the production capacity of the Huntsville plant in Alabama, adding more than 350 new jobs. With the new investment, the total investment in Toyota Alabama stands at more than $1.7 billion. The expansion will introduce new lines for drivetrain products.

Per Jason Puckett, president of Toyota Alabama, the new lines are aimed at increasing the plant’s flexibility.

Toyota Alabama, the company’s largest engine producer in North America, employs more than 2,000 team members. The team assembled more than 770,000 engines in 2023. The engines assembled in Huntsville power the Corolla, Corolla Cross, Sienna, Tacoma, Highlander, RAV4, Sequoia and Tundra.

This new investment will enhance the legacy of TM’s Alabama engine plant and generate more opportunities for local citizens.

The Japanese auto giant aims to generate 40% of its global sales from EVs by 2025 and 70% by 2030. The company plans to invest more than $35 billion in EVs through 2030 and introduce 30 new EV models by the end of the decade. It aims to expand global sales of BEVs to 1.5 million units in 2026 and 3.5 million units a year by 2030.  

Toyota plans to introduce a new series of solid-state batteries aimed at extending the range of its EVs while reducing production costs. The ratio of electrified vehicles sold to total sales in fiscal 2024 was 37.4%. The company expects the ratio to increase to 46.4% in fiscal 2025.

Zacks Rank & Key Picks

TM currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the auto space are Blue Bird Corporation BLBD, Oshkosh Corporation OSK and Geely Automobile Holdings Limited GELYY. While BLBD and OSK sport a Zacks Rank #1 (Strong Buy) each, GELYY carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for BLBD’s 2024 sales and earnings suggests year-over-year growth of 17.29% and 155.14%, respectively. The EPS estimates for 2024 and 2025 have improved 63 cents and 69 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for OSK’s 2024 sales and earnings suggests year-over-year growth of 9.86% and 11.92%, respectively. The EPS estimates for 2024 and 2025 have improved 12 cents and 10 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 21 cents and 34 cents, respectively, in the past 60 days.

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Toyota Motor Corporation (TM) : Free Stock Analysis Report

Oshkosh Corporation (OSK) : Free Stock Analysis Report

Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report

Blue Bird Corporation (BLBD) : Free Stock Analysis Report

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