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Toyota Alabama Adds Differential Production, Expands Workforce

Toyota Alabama expands production to include differentials for Tacoma, Tundra, and Sequoia, creating 350 jobs and fueling innovation in Huntsville.

October 16, 2025
Differential gears organized on conveyor system at Toyota Alabama factory in Huntsville.

Differential components line the production conveyor at Toyota Alabama’s Huntsville manufacturing facility.

Photo: Toyota

2 min to read


Toyota Alabama has officially started assembling three new differentials designed for the Toyota Tacoma, Tundra, and Sequoia. This marks another milestone in the company’s $282 million investment announced in 2024, which also created 350 new high-quality jobs in Huntsville.

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“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, president of Toyota Alabama. “Our team members dedicated themselves to mastering the new processes and techniques needed for these products, and they’re fully prepared to tackle the exciting challenge of machining and assembling differentials.”

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Toyota Alabama worker assembling differential component for Tacoma, Tundra, and Sequoia production line.

A Toyota Alabama team member works on assembling a new differential for Toyota’s trucks and SUVs.

Photo: Toyota

Expanding Innovation and Local Impact

A differential allows the wheels on the same axle to rotate at different speeds, helping ensure smoother, safer handling by allowing the outer wheel to travel a longer distance than the inner wheel during turns.

“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’re confident our proven success will carry over to assembling these new differentials.”

Toyota Alabama currently supplies engines for seven of the nine Toyota vehicles built 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.”

Toyota Alabama employee using automated machinery during differential assembly process in Huntsville plant.

Team members at Toyota Alabama operate precision machinery on the new differential assembly line in Huntsville.

Photo: Toyota

Building on Toyota’s Commitment to Huntsville

In 2024, the Huntsville plant’s team assembled more than 895,000 engines. With the addition of differential production, Toyota’s total investment in its Alabama operations now exceeds $1.7 billion.

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Beyond manufacturing, Toyota continues to invest in the local community. The company recently announced up to $4.2 million in grants to Huntsville City Schools as part of its Driving Possibilities initiative, which aims to expand access to STEM education and career pathways. These grants build on a $6.7 million commitment made in 2023, bringing the total investment in the Huntsville area 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.

Toyota Alabama employee smiling in safety vest on differential production floor in Huntsville.

A Toyota Alabama team member gives a thumbs up after the successful launch of differential production in Huntsville.

Photo: Toyota

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