Toyota and Mazda are expected to announce Wednesday a new $1.6 billion dollar plant near Huntsville according to multiple sources familiar with the deal.
"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S".
"We are committed to becoming a "best-in-town company" in the city of Huntsville and the state of Alabama, a new hometown for Toyota and Mazda". The companies said they expect the plant to open in 2021. I'm thankful Alabama was selected despite fierce competition from other states vying for this plant. To Toyota and Mazda, thank you so much. We're told incentives for Mercedes totaled over $250 million. Alabama Commerce Secretary Greg Canfield said that figure does not include a local incentive package that is still being finalized.
When Toyota and Mazda announced their joint venture in August previous year, Trump took to Twitter to praise the Japanese automakers for their American-centric decision.
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.
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. With more than 150 Tier 1 and 2 automotive suppliers in the state as well as automakers, there are approximately 57,000 automotive manufacturing jobs in Alabama. To entice manufacturers, Southern states have used a combination of lucrative incentive packages, low-priced labour and a pro-business labour environment since the United Auto Workers union is stronger in Northern states. The state produced 9 per cent of the cars made in the USA, the centre said.
"The partnership between Toyota and Mazda will expand innovative automotive manufacturing in Alabama", Governor Ivey said.
States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies.
A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the USA market in Mexico. Corolla sales fell 14 per cent for the year, to just less than 309,000, according to Autodata Corp.
"The impact of an auto assembly plant extends beyond its immediate economic impact, and that's why states offer robust incentives", said Dennis Cuneo, a site-selection consultant and former Toyota executive. 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.