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AUTOMOTIVE

by Adam Bruns

Workers at the Toyota Motor Manufacturing Kentucky plant in Georgetown
Photo courtesy of TMMK

AUTOMOTIVE INDUSTRY DRIVES KENTUCKY’S ECONOMY FORWARD

When you’re the No. 1 state for passenger vehicle production per capita, the critical mass draws in more investment like metal filings to a magnet.

When you’re the No. 1 state for passenger vehicle production per capita, the critical mass draws in more investment like metal filings to a magnet.

The map in a 2024 report on the industry’s economic impact from the Center for Automotive Research demonstrates why, with the commonwealth directly in the center of the I-75 automotive industry corridor, employing more than 53,000 in direct motor vehicle and parts manufacturing alone (more than 106,000 in automotive-related establishments overall). Moreover, the east south central region with Kentucky at its heart is responsible for more indirect automotive jobs across the entire nation than any other region.

The more than 25 automotive projects tracked in Kentucky in 2024 by Site Selection magazine’s Conway Projects Database only further cement the commonwealth’s reputation, especially when all but seven of them came from companies already based in the state. And especially when one of them was the state’s largest capital investment of the year.

Portrait of Longevity: Toyota Motor Manufacturing Kentucky President Kerry Creech started his career as a powertrain production team member at Toyota Kentucky in 1990.

That would be the $922 million advanced paint facility investment being made by Toyota Motor Manufacturing Kentucky (TMMK) at its manufacturing complex in Georgetown. Scheduled to open in 2027, the facility will add 1 million sq. ft. of capacity while decreasing carbon emissions by 30% and water usage by 1.5 million gallons per year, the company said.

Earlier in 2024, TMMK pledged to grow an investment announced in 2023 to $1.3 billion at the Georgetown site to bring assembly of an all-new, three-row battery electric SUV to the U.S. market in 2026. The company’s electric push is part of $11.7 billion in new Kentucky investment from EV-related projects, which aim to deliver more than 10,250 full-time jobs.

Toyota’s investment in Kentucky has reached more than $11 billion since the company broke ground in Georgetown in 1986 — an average of $282 million per year. And education and workforce development have been central to the more than $154 million in local donations Toyota has made in Kentucky since launching construction in 1986.

That long-term commitment is reciprocated by the talent on hand in the commonwealth.

“This year alone more than $2 billion is being reinvested in our plant and further supports Toyota’s promise of long-term job security for our team members,” said Kerry Creech, president of Toyota Kentucky, who symbolizes that long term himself, having begun his career as a powertrain production team member at Toyota Kentucky in 1990.

Equal in strength to the 10,000-strong Georgetown operation is Toyota’s nationwide network of more than 350 suppliers, including over 100 in Kentucky. Vuteq, for example, was recently approved by local planning commissioners in Georgetown for a 4,200-sq.-ft. expansion at Georgetown Industrial Park because it needs to add 48 new injection tools to help service 54 new contracts for part numbers.

Such investments are part of a surge of automotive projects that totals $$26.1 billion announced since 2014 and can best be explored by a driving tour on the state’s superior highways to the latest hot spots. Here are a few of them, all supported by an array of incentive programs:

Glendale, Hardin County: Ford Motor Co. and SK On, $5.8 billion, 5,000 jobs: BlueOval SK Battery Park continues apace with hundreds hired since the BOSK joint venture saw the June 2024 opening of the Elizabethtown Community and Technical College (ECTC) BlueOval SK Training Center to begin providing onboarding and training. More than 1,000 employees had already been trained in the year previous to that facility’s opening. BOSK’s Kentucky 1 plant is expected to start up production in 2025.

There are 560+ automotive-related facilities in Kentucky.

Bowling Green, Warren County: AESC, $2 billion, 2,000 jobs; PEAK Precision Manufacturing, $3 million, 24 jobs: Industrial momentum in Bowling Green is so strong that the Warren County Water District is keeping pace with 10 miles of new water line and another 10 miles of new sewer line to support growth. The AESC EV battery manufacturing campus continues on its own pace to attain full production capacity in 2027. PEAK Precision describes itself as “a startup mass production and manufacturing business that fabricates metal parts to service industrial sectors across the automotive, agricultural, defense, steel and aluminum platforms.” It aims to be operational before the end of 2025.

Mitsubishi Electric US, operating in Kentucky since 1995, is investing $143.5 million and creating 122 jobs through repurposing its plant in Maysville.

Photo courtesy of MEUS

“Our team is ready to leverage our expertise in CNC machining and mass production to meet pressing manufacturing needs within our industry,” said Steve Allen, PEAK Precision CEO, at the July 2024 announcement. “We have been fortunate to secure initial contracts during the start-up phase, and we look forward to utilizing our outstanding leadership team to help take this company to new heights in a very short amount of time.”

Frankfort, Franklin County: Nitto, 220 jobs: The Japanese manufacturer of high-performance materials for automotive, electronics, aerospace and other industries announced in January 2025 it will open a new plant in Franklin County’s Industrial Park 3 by spring 2025.

One out of every 17 workers in the U.S. automotive industry works in Kentucky, where over 106,000 individuals are employed in automotive-related establishments.

“Nitto is excited to put down roots in the capital city and to welcome our team to the area in 2025,” said Yukihiro Horikawa, president of Nitto Inc. “The access to our customers is unparallelled in the Bluegrass region.” It’s the largest job creation announcement in Frankfort/Franklin County since 2010.

Science Hill, Pulaski County: Ridgenet Network Group LLC, $1.2 million, 20 jobs: This manufacturer of equipment for emergency vehicles and other components used in law enforcement, fire and EMS will use a new facility to triple its production of upfitted vehicles and quadruple its warehouse space.

“We saw a need for emergency upfit services in this area, so we took a chance, started a small company based in our hometown and grew it into what it is today,” said Ridgenet Network Group CEO Eric Wilson at the October 2024 announcement. He founded the company as an internet service provider in 2011 with his brother Alex, pivoting to equipment provision for first responders in 2019. “Being that we are both first responders, my brother and I know firsthand how crucial the services we provide are and how they affect the safety of emergency services. This expansion will allow us to expand our footprint, increase the quality of our builds and allow for additional services to be added.”

“Ridgenet is a company that has shown, time and again, the spirit of economic development here in Pulaski County,” said Pulaski County Judge/Executive Marshall Todd. “They cover everything from emergency vehicle upfitting to mission critical radio communications and we are glad they are located here locally.”

Boone County (Northern Kentucky): Mubea, $24.3 million, 102 jobs: The German supplier of lightweight products for automotive chassis, bodies and powertrains plans to renovate an existing building to accommodate additional spring wire and coil spring production. BE NKY Growth Partnership CEO Lee Crume noted at the August announcement that a Kentucky delegation had a productive meeting with Mubea executives at their headquarters in Germany two months earlier.

“Mubea has been part of the commonwealth’s expansive logistics and distribution sector for more than four decades,” said Gov. Andy Beshear in August 2024, “and I’m excited to see them continue to grow here.”

Maysville, Mason County: Mitsubishi Electric US, $143.5 million, 122 jobs: As the automotive industry evolves, Kentucky companies and talent evolve with it, even if it means a transition into other sectors. Mitsubishi Electric US (MEUS) in July 2024 announced plans to establish the first-ever U.S. factory to build advanced twin-rotary variable capacity compressors, the key technology used in Mitsubishi Electric Trane HVAC US (METUS) highly efficient heat pump systems for commercial and residential buildings. MEUS has been manufacturing automotive components in the state since 1995, helped by training collaborations with Morehead State University and Maysville Community and Technical College.

In this case, the Japan-based company — Maysville’s second largest employer — is cementing its loyalty to the community through repurposing one of its existing internal combustion-oriented manufacturing facilities for the new work, much of which has been executed in Asia up to now. As with the Mubea project, the new investment commitment followed a visit by Gov. Beshear and his team with Mitsubishi Electric executives in their home country. It was the culmination of an 18-month process involving all levels of state and local government.

“Mitsubishi Electric is grateful to the Commonwealth of Kentucky for providing incentives to ensure we maintain our manufacturing presence in the Bluegrass State,” said Mike Corbo, president and CEO of Mitsubishi Electric US. “Creating technologies that support vibrant and sustainable societies is at our company’s core. This repurposed facility brings the production of compressors for our highly efficient heat pump systems here to the U.S., and with that new jobs and investments in technology that make American homes more comfortable, more sustainable and less expensive to heat and cool. This collaboration is a huge step toward many of our shared goals.”