According to Reuters, Toyota is considering producing the next version of its top-selling RAV4 SUV in the United States.
Toyota makes the current version of the popular SUV in Kentucky, Canada, and Japan. Originally, Toyota planned to export the new RAV4 to the United States from Canada and Japan, but it is now also considering production in Kentucky as one option. They have a plant in the state.
Adding supply from the United States would also lessen the impact for the Japanese automaker from President Donald Trump’s 25% tariffs on imported cars and avoid potentially higher costs in cases of fluctuations in the volatile yen currency, two of the people said.
Toyota is set to unveil an overhauled 2026 RAV4 – its first redesign since the fifth-generation 2019 model – later this year.
While many automakers already have significant operations in the U.S., some are considering or have announced plans to shift more production to the U.S. to avoid tariffs or expand their presence, including Honda and Volvo.
- Honda: Sources indicate that Honda plans to produce the next Civic model in Indiana, rather than Mexico, to avoid potential tariffs.
- Volvo: Some automakers, including Volvo, are considering moving more production to the U.S.
- Hyundai: Hyundai currently has a plant in Alabama and is building a new plant in Georgia.
- Tesla: Tesla, which assembles its cars in the U.S., is expected to see less of an impact from tariffs.
- GM, Ford, and Chrysler: are often referred to as the “Big Three”.
- Toyota: has surpassed Chrysler as the third-largest U.S. automaker.
Subscribe to the Daily Newsletter
