National Manufacturing Month: A Conversation with Toyota Kentucky

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Photo courtesy of Toyota Kentucky.
EDITOR’S NOTE: Commerce Lexington is proud to recognize the impact and importance of manufacturing to our regional economy during National Manufacturing Month in October. According to the International Trade Administration, U.S. manufacturing is an enduring and ever-evolving sector that contributes $2.9 trillion to the U.S. economy, employs nearly 12.9 million American workers, and accounts for 11 percent of the nation’s GDP. We caught up with the leaders of several of Greater Lexington’s key manufacturers to find out more about their operations, secrets to their success, advantages of being located in the region, and how their industry is evolving.
Toyota Kentucky

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The strength of Greater Lexington’s manufacturing economy is anchored by Toyota Kentucky in Georgetown, the company’s largest manufacturing plant in the world and home to more than 10,000 high-quality jobs. Its presence has helped fuel a strong network of automotive suppliers and positioned the Bluegrass Alliance’s auto/auto-related cluster as the region’s highest concentration industry, with a location quotient of 2.86.

David Fernandes is not new to Toyota Kentucky, but he is new to the role of president, taking over in July upon Kerry Creech’s retirement. Fernandes previously served as general manager of Powertrain at the Georgetown plant and most recently was senior vice president of Mazda Toyota Manufacturing in Huntsville, Alabama. He said, “The transition has been both exciting and familiar. Toyota Kentucky is a new leadership assignment for me, but it is also a place I know well from my earlier experience leading Powertrain here. What has changed is the breadth of my responsibility. What has not changed is Toyota’s commitment to safety, quality, respect for people and continuous improvement. My priorities are to listen, learn from the team and build on the strong foundation already in place.”

How would you describe your leadership style as you take on this new role?

Fernandes said, “I would describe my leadership style as people-first, visible and collaborative. I believe leaders need to spend time where the work happens, listen closely to team members and make sure people understand both the goal and their role in achieving it. I also believe in setting clear expectations and encouraging teams to identify problems, test ideas and keep improving. Toyota’s greatest strength is its people, so my role is to create the conditions for them to succeed.”

Culture is a big thing for companies these days as they work to attract and retain workers. What has Toyota implemented over the years to strengthen company culture?

“Toyota has strengthened its company culture by consistently emphasizing respect for people, continuous improvement, and teamwork. Over the years, we have built systems and practices that make those values real in daily work, including the Toyota Production System, team member development, and a strong focus on safety, quality, and problem-solving. It’s a culture designed to empower team members, improve collaboration, and support long-term success.”

The Georgetown plant is celebrating its 40th year in operation and recently broke ground on a new paint facility. Fernandes said, “The new paint facility is an investment in Toyota Kentucky’s long-term competitiveness. It will introduce more advanced, efficient processes, support future products and give the plant greater flexibility as customer demand and vehicle technology evolve.”

How does Toyota determine when is the right time to expand?

“We make expansion decisions by looking at customer needs, product strategy, manufacturing capability, workforce readiness and the long-term strength of its operations. Kentucky continues to earn investment because of the performance of our team members, the capabilities built here over four decades, and the strong partnership Toyota has with the Commonwealth and surrounding communities.”

Toyota Plant Image

Artificial intelligence is a hot topic right now, so how is Toyota approaching the use of AI in the workplace?

Fernandes said that AI will be an important tool in manufacturing’s future, adding, “Toyota is exploring and using artificial intelligence in targeted ways to help people work more safely and efficiently. Our approach is thoughtful and human-centered: technology should reduce burdens, strengthen quality and improve problem-solving – not replace the judgement and creativity of our team members. We also recognize the need for appropriate governance, data protection and responsible use.”

How difficult is it to manage something that by itself can be considered a small city, and how does the company maintain strong relationships locally, across the region and the state?

“Toyota Kentucky is a more than $12 billion operation with about 10,000 team members and the capacity to produce hundreds of thousands of vehicles and engines each year. Managing a facility of that size requires strong leadership, careful planning, and a deep commitment to people and the community,” Fernandes said. “We work to maintain strong local, regional, and statewide relationships by investing in jobs, partnering with schools and nonprofits, supporting workforce development, and staying actively engaged with civic and community leaders. The goal is to be not just a major employer, but a trusted long-term partner in the region.”

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The Georgetown plant is Toyota’s largest facility and is one of the biggest employers in the region. (Photo courtesy of Toyota)

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