Toyota Motor Corporation TM stated that it will invest $391 million in its truck assembly facility in San Antonio, TX. The move is part of the company’s $13-billion investment commitment in its U.S. operations over five years through 2021.
The investment would be an impetus to the Japan-based automaker’s U.S output. As part of the company’s commitment to continue funding for the development of local workforce development, Toyota Texas will give a donation of $500,000 to Alamo Promise over a five-year period. The investment is geared to address high customer demand.
Per a company spokesperson, no additional job opportunities are expected to be created in the factory. The fund will be used for installing advanced technologies that would increase the plant’s capabilities, which will make it more competitive and efficient in the years to come.
This will be Toyota’s third investment at the San Antonio plant. The facility assembles Tundra (full-size) and Tacoma (half-size) pickup trucks. The two pickup trucks have the shared assembly line but are not built on the same platforms, which in turn increases difficulties.
Additionally, Toyota partnered with Bexar County to create an innovative program named TXFAME.
Apart from the above-mentioned investment, Aisin AW, which is a supplier to Toyota Texas, declared that it will invest $400 million, which in turn will generate 900 new employment opportunities in Texas.
Per the San Antonio Economic Development Foundation, the above-mentioned investment will lead to the creation of over 40,000 jobs in the next 10 years.
While Toyota’s focus on electric and self-driving vehicles bodes well; amplified labor costs, increased raw material costs and declining sales, particularly in North America, remain concerning.
Toyota Motor Corporation Price and Consensus
Toyota Motor Corporation price-consensus-chart | Toyota Motor Corporation Quote
Zacks Rank & Stocks to Consider
Toyota currently carries a Zacks Rank #3 (Buy).
A few better-ranked stocks in the Auto-Tires-Trucks sector are Lithia Motors LAD, currently sporting a Zacks Rank #1 (Strong Buy), as well as Douglas Dynamics, Inc. PLOW and SPX Corp. SPXC, carrying a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Lithia Motors has an expected earnings growth rate of 12.8% for 2019. The company’s shares have gained 73.5% year to date.
Douglas Dynamics has an expected earnings growth rate of 11.1% for 2019. The company’s shares have grown 21.6% year to date.
SPX has an estimated earnings growth rate of 22.5% for the current year. Its shares have gained 19.9% year to date.
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