Toyota, Mazda plan to build factory in Alabama

Toyota, Mazda plan to build factory in Alabama

Toyota, Mazda plan to build factory in Alabama

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.

Toyota Motor and Mazda Motor have chosen the southeastern USA state of Alabama as the site for a new joint plant costing in the region of $1.6 billion, sources said Wednesday. But the automakers settled on Alabama following negotiations with local government. Toyota and Mazda, thank you so much.

The plant will employ about 4,000 people and will be built in the Huntsville area in Limestone County, said the person, who asked to remain anonymous because the location hasn't been officially announced.

Among U.S. states, Alabama is already the fifth largest producer of cars and light trucks. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation".

"Alabama won a first place trophy today in being selected for that plant", said Dave Sullivan, product analysis manager at AutoPacific Inc., an automotive research company.

"Our investment to establish a new vehicle assembly plant with Mazda builds on the very success we have enjoyed in Alabama, where we produce engines for the North America market", Toyoda said.

The new Alabama facility is expected to create up to 4,000 jobs.

Toyota and Mazda in August announced plans for a new USA factory, which will be able to build 300,000 vehicles per year and produce the Toyota Corolla compact auto starting in 2021.

After reassessing the market, Toyota Motor Corp. has changed its plan to make Corollas at a plant in Guanajuato, Mexico, now under construction, and instead will produce Tacoma pickups there, Toyota has said.

If Wednesday afternoon's announcement wasn't official enough, it's now received the President Trump tweet stamp of approval.

Two decades ago, Alabama spent an estimated $250 million to woo Daimler AG'sMercedes-Benz to put an auto plant in Tuscaloosa, sparking the birth of auto production in the state.

Still, Toyota and Mazda have said their collaboration will respect mutual independence and equality.

Trump praised the joint venture announcement, saying in August on Twitter: "Toyota & Mazda to build a new $1.6B plant here in the United States of America and create 4K new American jobs".

A year ago, shortly before his inauguration, Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the US market in Mexico.

There will be two production lines, which are expected to have an annual capacity of some 300,000 units.

Another factor is auto supplier jobs. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians.

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