Toyota’s Ind. investment will yield big crossovers dealers have craved

A pair of new unibody, three-row, eight-seat people haulers that will be built at Toyota Motor North America's assembly plant in Princeton, Ind., likely arriving in 2023, will give Toyota and Lexus dealers big top-end crossovers that will fill a competitive gap.

The automaker announced last week that it would invest $803 million into the factory and add 1,400 jobs there to build the yet-to-be-identified crossovers, which the company said will "join a diverse, electrified product portfolio."

In late December, Toyota trademarked the name Grand Highlander in the U.S. The two vehicles are likely to have at least hybrid if not plug-in hybrid variants, given the automaker's past pronouncements.

Lexus retailers have long sought a large, three-row crossover to compete with offerings from other luxury brands. Toyota dealers, meanwhile, have asked the brand to replace the Land Cruiser, which is ending its long run in the U.S.

"I think it allows us to compete with some of the big American SUVs but give an offering that gives better fuel economy," said Robby Findlay, chairman of the Toyota National Dealer Council. "A lot of the Highlander competitors have just a little more space, and I think what they're going for is something a little bigger."

The new models will feature "a semi-automated driving system — which will allow for hands-free driving in certain conditions — a remote parking system allowing the driver to park and unpark from outside the vehicle using a smartphone, and a digital key that turns a user's smartphone into their key and allows them to share it digitally," Toyota said.

The $803 million will be used "to prepare the manufacturing line for the new vehicles, production-employee training, as well as provide supplier re-tooling at their facilities," the company said.

The plant, which made the Toyota Tundra pickup when production began in 1998, has two lines that build Sienna minivans, Highlander crossovers and Sequoia SUVs. Production of the Sequoia there is scheduled to end in 2022, when it moves to the automaker's San Antonio plant. The facility has capacity to assemble more than 420,000 vehicles annually.

Toyota has previously invested more than $6.6 billion into the plant. With this investment, it will eventually employ more than 8,400 workers.

"Selecting Toyota Indiana for this opportunity shows the confidence Toyota has in our employees to take on new and exciting challenges," said Leah Curry, president of the plant. "Expanding our Toyota family by 1,400 is a challenge we are eager to accept. This is a testament to the strong workforce in the Southwest Indiana region. We're waiting with open arms to welcome new people and products to the family and can't wait to get started."