Toyota’s Investment in Kentucky

Abstract

On 11 December 1985 the Toyota Motor Corporation (TMC)¹ of Japan announced plans to build its first independent manufacturing plant in the United States. The initial investment in Toyota Motor Manufacturing of America (TMM) was to be $800mn dollars, with employment of 3000 people and a payroll of $80mn.² Ten years later, in 1995, Toyota had invested $3.2bn in its Kentucky facility with direct employment of 6500 and a payroll of $350mn.³ In retrospect, Kentucky’s large and controversial incentive package of $147mn ($305mn including interest payments on state bonds) has provided an excellent return on investment.⁴