Toyota and Mazda announce Alabama plant

by Ben Pena January 11, 2018, 0:22
Toyota and Mazda announce Alabama plant

Alabama will be the site of a new $1.6 billion Toyota Motor Corp and Mazda Motor Corp auto plant, a victory for President Donald Trump who had prodded manufacturers to build new US facilities and threatened tariffs on foreign production, sources said on Tuesday.

"Toyota and Mazda are not going to find a better site than ours", Bexar County Judge Nelson Wolff said in August.

"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S".

"Their decision to locate this new facility in Huntsville is a testament to the talented workforce in our state". And Toyota has an engine plant in the Huntsville area, near where it is planning to put the new facility.

Governor Ivey, speaking at an event in Alabama's capital city, welcomed the automakers to the state and said she looks forward to a long-lasting relationship that will spark a ripple effect of other investment and employment through automotive suppliers.

The new plant will have the capacity to build 300,000 vehicles annually, with production split evenly between two lines for each company to produce Mazda's crossover model that will be newly introduced to the North American market and the Toyota Corolla.

WDRB reported in August that Bevin said he had a personal relationship with Toyota Motor Corp.

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"With this announcement, our world changes overnight", Battle said.

No details have yet leaked regarding any tax incentives provided by the state, though it's been suggested that Mazda and Toyota were seeking at least $1 billion in incentives. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation".

The companies announced they would build a new plant at an undetermined location in August previous year under a capital tie-up and almost 20 US states sought to land the facility. The plan calls for rolling out 300,000 passenger cars a year to the USA market. The person did not want to be identified because the decision hasn't been made public. "By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Alabama and Huntsville", Kogai said.

Most of Toyota's US plants are in the South, and all are non-union.

The decision to pick Alabama is another example of foreign-based automakers building US factories in the South.

States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies.

In the coming months, after obtaining approvals and authorization by antitrust agencies, the new joint venture will be established, and site preparations will begin with the start of production in 2021.

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