Toshiba to expand Houston factory to produce electric vehicle motors

June 23, 2010

Electronics company Toshiba Corporation said it is planning to expand its manufacturing plant in Houston, Texas, to produce drive motors for electrified vehicles.

The production will be Toshiba’s first overseas manufacturing base for automotive propulsion motors which are currently produced in Mie Prefecture, Japan.

The decision follows the awarding of a major contract to supply drive motors for hybrid and plug-in hybrid vehicles for Ford Motor Company.

“Toshiba recognizes the importance of localizing production within North America to ensure long term growth and make a commitment to the North American market,” said Shinichiro Akiba, President, Toshiba International Corporation.

“We welcome Toshiba’s decision to locate this new production in the United States,” said Sherif Marakby, Director, Electrification Programs and Engineering, Ford Motor Company. “This key technology will help build U.S. capacity and supply of components to further enable vehicle electrification in the North American market.”

Toshiba will begin construction for the expanded capacity in January 2011 in Houston, Texas, on the site of Toshiba International Corporation.

Production of the automotive motors should begin in 2012.

Advances

The company said the automotive industry is now moving toward a new generation of environmentally friendly vehicles including hybrids, plug-in hybrids and battery electric vehicles.

Toshiba said it will work to promote advances in essential automotive technologies, from dedicated on-board control systems to batteries and Intelligent Traffic Systems.

The company said its development of key components for HEVs, PHEVs and EVs, including inverters and drive motors, would be “an essential part of Toshiba’s strategy in growing this promising business”.

Electrified vehicles are attracting increased attention and growing levels of investment from the automotive industry.

Toshiba estimates that the global market for motors for such vehicles, including hybrids, plug-in hybrids and battery electric vehicles, will grow from 50 billion yen in fiscal year 2009 to 1 trillion yen in fiscal year 2020.

The Houston location will allow Toshiba to increase its marketing of automotive systems and components in the United States, establish closer contact and collaboration with automobile manufacturers, and allow auto companies to increase local procurement of key components.