New Toyota-Mazda factory to be built in Alabama

Posted January 11, 2018

When Toyota-Mazda announced the joint venture and its plans to locate the plant in the US, state officials made a huge push for the project, which is expected to eventually employ 4,000 people and generate a $1.6 billion investment. Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury models, already provides hybrid technology to Mazda, which makes compact cars for Toyota at its Mexico plant.

"Their decision to locate this new facility in Huntsville is a testament to the talented workforce in our state".

Toyota had originally planned to build a new Corolla plant in Mexico, but after the joint venture plans were announced in August, Toyota changed course and made a decision to build the Tacoma pickup at the plant in Mexico and the new Corolla at the new USA plant.

The joint venture will receive roughly $380 million in incentives from the state of Alabama, including a jobs credit of $90.6 million and an investment credit of $210 million over 10 years, according to a release from the Alabama Department of Commerce.

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

Toyota has 10 USA plants in eight states in an arc running from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation".

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".

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USA sales of small cars fell almost 10 percent previous year as buyers continued a massive shift toward SUVs and pickup trucks.

"Mazda makes cars with a clear vision of how we want to inspire people, contribute to society and help preserve the beauty of the Earth".

"By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Huntsville and Alabama", he added.

It's hard to predict auto sales in three years but, at present, Toyota may not need the factory for Corolla production.

"The partnership between Toyota and Mazda will expand innovative automotive manufacturing in Alabama", Governor Ivey said. 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.

Japanese automakers Toyota and Mazda are making an announcement about their new massive joint factory.

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.