Toyota's latest investment will help keep up with consumer demand for products like the new Avalon.

With steady growth in North American sales pinching capacity throughout the auto industry, Toyota Motor Corp is struggling to maintain its market share and now plans to boost capacity with a $200 million investment at three key factories in the U.S.

Toyota is far from alone. Sales in the U.S. are expected to jump from 14.5 million in 2012 to 15.5 million this year, leaving a number of makers racing to keep pace. Among manufacturers now planning to add employees and, if necessary, expand existing facilities are Ford Motor Co, General Motors Co. Chrysler Group, Nissan Motors and Honda.

The steep recession that started in 2008 forced manufacturers and suppliers to trim capacity and until now they have been slow to add new capacity even as sales have recovered. But the tempo of new investment finally is picking up.

Toyota Motor Engineering & Manufacturing North America, Inc. or TEMA, said that its Alabama engine plant and Bodine Aluminum casting plants will invest a combined $200 million to boost machining capacity and engine parts production for V6 engines.

The plans will boost machining capacity and component production for V-6 engines. Toyota will complete an expansion of the engine plant by early 2014. The machining project is scheduled to be completed by July 2015.

The announcement represents Toyota’s ninth manufacturing investment in North America over the past two years, a program that now totals more than $2 billion

Toyota Alabama will hire approximately 125 upon completion of its current $80 million V6 engine assembly expansion by early 2014; its total employment will be 1,150. Annual engine capacity will jump to nearly 750,000 units.

Toyota Alabama currently assembles 4-cylinder, V-6 and V-8 engines used in eight of the 12 Toyota vehicles assembled in North America. It is the only Toyota plant globally to produce these three types of engines under one roof.

Bodine Aluminum, wholly-owned by Toyota Motor Corporation and a manufacturer of casting parts, will invest $50 million and create a total of 40 new jobs at its plant in Troy, Missouri., and 10 new jobs at its plant in Jackson, Tennessee, to provide cylinder heads and blocks to Toyota Alabama. Bodine’s total investment will top $650 million and will employ nearly 1,100 at its three locations once the machining project begins.

In addition to Toyota Alabama, Bodine also provides cylinder heads and blocks to Toyota’s engine manufacturing facilities in Kentucky and West Virginia.

“Today’s investment of $200 million into three separate Toyota facilities demonstrates Toyota’s commitment to North America and our localization efforts,” said Osamu “Simon” Nagata, president and CEO of TEMA. ”Our commitment to our local communities where we produce engines, engine parts and vehicles has never been stronger thanks to our team members and their continued focus on safety, quality and continuous improvement.”

Toyota saw its U.S. vehicle sales rise 5.2% this year through May, less than the 7.3% industry-wide sales increase.