Toyota Motor Corporation will build a new plant with an investment of 680 million euros, or roughly $792 million. This funding will help SOR to develop a second production line at its plant in Kolin, Czech Republic. This endeavor would be the company’s first battery electric vehicle manufacturing operation in Europe.
With the addition of the new production line, they will focus on assembling battery electric cars. This announcement further bolsters Toyota’s commitment to increase production of electric vehicles. The Kolin facility, which lies some 50 kilometers (31 miles) east of Prague, directly employs 3,200 workers today. Prime Minister Petr Fiala was the first to ride on the inauguration of the new line. This positive development will add 245 new jobs to the factory.
Uptake of the incentive For its expansion, Toyota will be eligible for a government incentive. This incentive amount could total as much as 64 million euros, or approximately $75 million. This funding is further evidence of the Federal government’s commitment to encourage innovation and promote job creation in the automotive industry.
Toyota’s big investment is evidence of the company’s major pivot to electric mobility. It serves to underscore the increasing confidence in the Czech Republic as an automotive production hub. Toyota’s announcement to invest in Kolin is a sign of the company’s deep commitment to European markets. There, the appetite for green cars is through the roof.
The announcement comes at a moment when automakers are under increasing scrutiny. To meet these new challenges, they need to move away from combustion engines towards an all-electric future. With increasing competitive pressures and share losses to electric rivals like Tesla, Toyota is actively accelerating the establishment of new production lines to improve their position. Innovation and progressive sustainability underlies this growth strategy.
