Japanese car-maker Toyota announced that it plans to invest $10 billion in the US over the next five years the latest car giant to announce major investments.
Toyota’s North America chief executive, Jim Lentz, revealed the pronouncement at the Detroit motor show.
He also clarified that this announcement had nothing to do with President-elect Donald Trump’s aggression to imported cars, but was part of its present strategy.
In the recent weeks, Mr Trump has been warning tax firms that make cars in Mexico for the US market. Mr Lentz also said the money was going on a new HQs in Texas and improve the current US car plants.
Earlier, another car-maker giant BMW also revealed that it was “absolutely” steadfast to a new plant in Mexico, despite Mr Trump’s opposition to such policies.
German giant plans to invest more than $1 billion on a plant in Mexico, while other firms are spending in the US or moving production back.
Over the last week, Fiat Chrysler Automobiles (FCA) revealed a $1 billion plan to produce three Jeep models in the US.
FCA will also move the production of a Ram pickup truck from Mexico to the US.
Last week, Mr Trump slated General Motors for building cars in Mexico for the US market.
“General Motors is sending Mexican-made model of Chevy Cruze to US car dealers tax-free across border. Make in USA or pay big border tax!” he tweeted.
He also warned Toyota with a border tax if it went forward with a new plant in Mexico.
Mr. Lentz also said that Toyota had been planning for the Mexico plant for at least two years before publicizing the move in 2015 and that it was a long-term decision.
BMW sales and marketing director Ian Robertson said that the company was investing $1 billion in its plant in South Carolina and underlined that BMW was the biggest exporter of cars, in terms of value, from the US.