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Toyota, Mazda plan to build factory in Alabama

11 January 2018
Toyota, Mazda plan to build factory in Alabama

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.

It will be able to build 300,000 vehicles per year and will produce the Toyota Corolla compact auto for North America and a new small SUV from Mazda, the companies have said.

Alabama's governor made it official on Wednesday: The southern state has won the competition to snag a massive Toyota-Mazda manufacturing plant, beating out North Carolina.

Today's monumental announcement by President Akio Toyoda of the Toyota Corporation and President and CEO Masamichi Kogai of the Mazda Corporation is not a new commitment, but a continued commitment with proven world leaders in automotive ingenuity to the State of Alabama and our people.

Expected to open in 2021, the plant breaks ground at a time where USA auto sales are on a decline, meaning increased pressure to cut costs could jeopardize the automakers' plans to scale up US production.

A Toyota spokesman declined to comment, except to say an announcement was expected soon. The new facility will be built about 11 miles from Toyota's Alabama engine plant.

The partnership between Toyota and Mazda will expand innovative automotive manufacturing in Alabama. The plan for the Alabama plant appears to reflect Trump's calls for more investment and jobs in the United States. Mazda plans to build new crossover SUVs at the plant.

US President Donald Trump past year tweeted criticism of Toyota for planning to build a factory in Mexico to distribute to the US market. Rather, this victory is the culmination of decades of hard work and leadership offered by local, state and federal officials who have consistently worked together to make the Tennessee Valley a great place to live and work, a place that encourages companies like Polaris, Remington, and now Toyota and Mazda, to rank the Tennessee Valley #1 in America.

In October, Toyota said it would scale back investment in a planned plant in Mexico by 30 percent to $700 million and cut planned annual capacity in half to 100,000 vehicles as it shuffles its production plans to meet market demands.

I am extremely proud that Huntsville was selected by Toyota and Mazda for the joint auto production plant.

The two firms a year ago formed a capital alliance and announced a plan to build the factory for 1.6 billion dollars in the United States by 2021.

The news that Toyota and Mazda have chosen Alabama as this new plant's home highlights once again that our great state is open for business. Toyota and Mazda's decision validates what many of us in Alabama already know. Sullivan said the factory itself is a huge asset for the state, but it will also cause economic ripples by bringing spinoff jobs at suppliers and service companies in the area. It was behind MI at 19 percent; IN at 12 percent, Kentucky at 11 percent; and OH at 10 percent.

Toyota and Mazda are forming a capital alliance and splitting the cost for the plant equally. "It creates a halo effect that in turn helps attract other projects".