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