Toyota Kentucky started production of the redesigned RAV4 Hybrid today and broke ground on a paint facility engineered to cut carbon emissions 30 percent while saving 1.5 million gallons of water annually. The moves are anchored by $2 billion in investments announced over the past two years at the Georgetown plant, Toyota’s largest manufacturing site globally.
The RAV4 returns to Kentucky after the plant launched hybrid production in January 2020 following earlier investments totaling over $1.5 billion since 2017. The hybrid variant accounts for roughly 35 percent of RAV4 sales, and analysts note that in the current fifth-generation model, standard hybrid and plug-in hybrid versions together make up about half of total U.S. volume. The RAV4 has been America’s best-selling SUV for eight consecutive years, with annual sales never dipping below 400,000 units since 2017.
Toyota Kentucky president Kerry Creech framed the production start as a capacity play to meet electrified-vehicle demand. The plant will also launch the new Highlander Battery Electric Vehicle in September 2026, adding a second electrified nameplate to a facility that employs nearly 10,000 workers and builds 550,000 vehicles annually.
The paint facility is designed to become a global benchmark for Toyota by enhancing efficiency and product flexibility. The 30 percent carbon reduction and water savings targets position the plant to scale production of electrified models without proportional environmental cost increases. Construction timelines and the facility’s operational start date were not disclosed.
Toyota Kentucky also announced a $500,000 workforce development grant to Bluegrass Community and Technical College in support of a new regional training facility. The initiative is intended to provide hands-on training for students and upskill current workers across the Bluegrass region as the plant shifts toward advanced manufacturing processes required for battery-electric and hybrid assembly.
The Georgetown facility has produced more than 15 million vehicles since opening in 1988, with total investment now exceeding $12 billion. Four other Toyota U.S. plants are celebrating anniversaries this year, part of a manufacturing footprint that includes 11 plants and approximately 48,000 direct employees nationwide.
Source: Toyota. Images courtesy of Toyota.
