Toyota to build hybrid Camry in Kentucky

GEORGETOWN, Ky. — Toyota Motor Corp. rolled out plans Tuesday to build a hybrid version of its popular Camry model at its Kentucky plant, marking the automaker’s first venture to produce a hybrid vehicle in North America.

Production is expected to begin in the second half of 2006, and company officials pegged initial output at up to 48,000 vehicles each year. Toyota said it plans a $10 million investment in the Georgetown plant, its largest in North America, but said employment will increase by fewer than 100. The plant employs about 7,000 workers and can build up to 500,000 vehicles per year.

State officials and plant workers cheered Toyota’s decision.

Gov. Ernie Fletcher said Kentucky will be making the most technologically advanced automobile in America and the venture could spin off more parts suppliers.

Hybrid production will take place on one of the plant’s two existing production lines, the automaker said. No new construction is planned. The $10 million will go mainly for equipment modifications and employee training.

Kentucky legislators passed tax legislation this year allowing carmakers to recover some costs of building hybrids, a move Toyota officials cited in announcing their decision. California and Canada also made a push to land the project.

Toyota said details about the Camry hybrid will be released later.