Smooth Move: Toyota Alabama Starts Differential Production

Toyota Alabama started assembly of three cutting-edge differentials, engineered to elevate Toyota’s legendary trucks, the Tacoma and Tundra, and the Toyota Sequoia. The new production lines and additional 350 high-quality American jobs are the result of a $282 million investment announced in 2024 and Toyota’s commitment to reinvesting profits in its U.S. operations.

“These new product lines highlight Toyota Alabama’s flexibility and reinforce the company’s commitment to our team and the Huntsville community,” said Marc Perry, Toyota Alabama president. “Toyota Alabama team members dedicated themselves to mastering the new processes and techniques needed for these products, and they are fully prepared to tackle the exciting challenge of machining and assembling differentials.”

A differential enables the wheels on the same axle to rotate at varying speeds. This helps ensure smooth, safer handling by allowing the outer wheel to travel a longer distance than the inner wheel when navigating a turn.

“There’s a real energy that comes with being part of new product lines at the plant,” said Alex Potter, a Toyota Alabama team member of nearly two years. “Our plant is known as an engine powerhouse, and we are confident our proven success will carry over to assembling these new differentials.”

In addition to differentials, Toyota Alabama supplies engines for seven of the nine Toyota vehicles assembled in North America, accounting for nearly half of all engines assembled in the region.

“Innovation, collaboration and community are the hallmarks of Huntsville’s growth, and Toyota has embodied those values for nearly a quarter-century,” said Huntsville Mayor Tommy Battle. “This $282 million investment and the 350 good-paying jobs it created are fueling our economy and strengthening our workforce, ensuring Toyota remains at the forefront of industry innovation.”

In 2024, the plant’s dedicated team members assembled more than 895,000 engines. With the addition of the three differential products, the company’s total investment in Toyota Alabama is more than $1.7 billion. Beyond the plant, Toyota is deeply committed to supporting the Huntsville community. The company recently announced up to $4.2 million in grants to Huntsville City Schools as a part of Driving Possibilities, an initiative aimed at expanding access to quality STEM education and career pathways. The grants build on a $6.7 million commitment in 2023, bringing the total Driving Possibilities investment in Huntsville to nearly $11 million. Driving Possibilities is an initiative of the Toyota USA Foundation, funded in part by Toyota Motor North America and Toyota Financial Services.

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