Toyota (TM) to Invest $600M in Princeton, Indiana Plant

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Toyota Motor Corporation 's TM announced plans to invest $600 million in its plant in Princeton, IN. The funds will help the company modernize the plant and meet the rising demand for the Highlander midsize SUV. This investment plan will also create 400 new jobs at the plant.

Toyota will utilize the outlay mainly for retooling and purchasing new equipment and advanced technologies in order to update the plant. The automaker expects the plant to be operational from 2019 and produce 40,000 Highlanders annually. This expansion drive is part of the company's initiative to localize vehicle manufacturing in regions where they are sold.

The Princeton plant produced over 400,000 vehicles last year, the highest level in its 20-year history. The third-generation Highlander was launched at the Indiana plant in 2013.

Recently, Toyota announced plans to invest $10 billion in the U.S. over the next five years. The automaker will utilize the funds to meet the rise in demand for fuel efficient vehicles and also to upgrade facilities.

The investments will also be used to fund the construction of the company's new North American headquarters in Texas and to upgrade a few facilities.

Toyota Motor Corp Ltd Ord Price

Toyota Motor Corp Ltd Ord Price | Toyota Motor Corp Ltd Ord Quote

Price Performance

Toyota underperformed the Zacks categorized Auto Manufacturers-Foreign industry over the last one year. Share price of the company increased 2.88% while the industry saw a 9.24% increase. This was largely due to the slashed guidance for earnings, operating income and revenues for fiscal 2017. Settlement of a U.S. truck lawsuit, string of product recalls and declining sales outside Japan also hurt the share price.

Zacks Rank & Key Picks

Toyota currently carries a Zacks Rank #3 (Hold).

Better-ranked companies in the auto space include Oshkosh Corporation OSK , Fox Factory Holding Corp FOXF and GKN plc GKNLY . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Fox Factory has an expected earnings growth rate of around 16.6% for the current year.

Oshkosh Corporation has an expected long-term growth rate of 8.4% while the same for GKN is pegged at 6.3%.

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Toyota Motor Corp Ltd Ord (TM): Free Stock Analysis Report

Oshkosh Corporation (OSK): Free Stock Analysis Report

Gkn PLC (GKNLY): Free Stock Analysis Report

Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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