Auto parts retailer Reilly Auto Parts said on Tuesday that it will invest $4bn in its US operations to make them more efficient and cost-competitive.
The company said the investment will include buying more vehicles from US automakers like Chevrolet and Ford and investing in new technologies like autonomous vehicles.
The decision comes amid an aggressive US push to become the global leader in autonomous vehicles, which could see Tesla and Google compete for business in many areas, including the US.
The new investment follows the company’s announcement earlier this month that it would invest $1.6bn to create a $2bn vehicle manufacturing facility in Nevada, which is currently located in the state of California.
Reilly said the new investment would be used to “reduce labor costs and automate production processes”.
The announcement comes as Reilly announced that it had signed a contract with Toyota for the creation of an autonomous vehicle research centre.
Really said the joint venture with Toyota is aimed at developing the technology for an “autonomous vehicle that would be capable of travelling on highways at high speeds”.
The deal comes at a time when many auto parts manufacturers are in a state of uncertainty, with suppliers facing delays in getting production of vehicles on track for mass production.
According to data from Edmunds, the US is estimated to have produced more than 6 million self-driving cars in 2017.