| The Toyota Motor Corp. is planning a $413 | | | | Avalons and 48,000 Solaras in Georgetown in |
| million upgrade to its Georgetown, Kentucky | | | | the previous year. The target came along with |
| plant. The plan is intended to boost the | | | | approximately 500,000 six-cylinder and |
| production capacity and efficiency. The | | | | four-cylinder engines. |
| automaker also plans to add a model to the | | | | |
| Camry, Avalon and Solara vehicles in said the | | | | Madden noted a possible name for the new |
| plant. | | | | wagon is the Ace. That name is being used for |
| | | | a vehicle sold in Japan, but she said the |
| The Kentucky Economic Development Finance | | | | American wagon would be completely different. |
| Authority gave preliminary approval for $25 | | | | Hesterberg said that Toyota does not comment |
| million in economic incentives for the work. | | | | on details of upcoming models. He added, "A |
| Toyota has about 7,000 employees at the | | | | final decision about the new vehicle has not |
| Georgetown factory, but spokesman Rick | | | | been made and Georgetown is not the only |
| Hesterberg said the upgrades would not result | | | | location in the running." |
| in any new jobs. Hesterberg added that the | | | | |
| money would be invested in the assembly and | | | | Under the company's agreement with the state, |
| production areas. He declined to discuss the | | | | employment at the Georgetown plant could |
| new vehicle being considered for the plant. | | | | actually decrease to 6,750 in 2008-09, then |
| | | | to 6,466 in 2010-2013 and to 6,253 in |
| Catherine Madden, a senior automotive analyst | | | | 2014-17. Hesterberg said those guidelines |
| for market-research firm Global Insight near | | | | reflect the minimum number of jobs the plant |
| Boston, said that she expects the new vehicle | | | | must have to receive state incentives, and he |
| will be a midsized sport-touring wagon which | | | | said there are no plans to reduce the size of |
| is quite similar to the Matrix but larger. | | | | the work force. Almost 1,000 temporary |
| Madden added the plant would be a logical | | | | workers are employed at the plant through a |
| choice for the new model because the frame | | | | staffing agency. |
| would be based on the Toyota Camry. She said | | | | |
| about 80,000 of the vehicles would be made | | | | Gene Fuqua, the acting secretary of the |
| each year. | | | | Kentucky Cabinet for Economic Development, |
| | | | said that the program has only been used a |
| Some of the Toyota Camry production at | | | | few times. "We don't get $400 million |
| Georgetown could be shifted to a plant in | | | | investments very often," he said in an |
| Lafayette, Indiana, to free up room, Madden | | | | interview. "No question, there's a lot of |
| added. "This is the beauty of what the Toyota | | | | spinoff from this." |
| system is supposed to do," she said of | | | | |
| Toyota's ability to shift work between plants | | | | The proposed tax breaks fall under the |
| and produce manifold models based on the same | | | | Kentucky Reinvestment Act. The latter offers |
| welding points and architecture. | | | | incentives to companies with at least 1,000 |
| | | | employees that make significant upgrades even |
| The automaker, known for its refined auto | | | | if they are not adding jobs. A copy of the |
| parts which could be compared to the quality | | | | agreement between the state and Toyota stated |
| of APC cold air intake, has invested $5.5 | | | | that the work is estimated to be completed in |
| billion in its Georgetown plant. It expected | | | | late 2008. |
| to produce about 352,000 Camrys, 93,000 | | | | |