Toyota and Mazda announce Alabama plant

Employees work on an assembly line of the Toyota Motor Corp's Prius hybrid car at the Tsutsumi plant in Toyota central Japan

The partnership between Toyota and Mazda will expand innovative automotive manufacturing in Alabama.

Japanese automakers Toyota and Mazda say they will build a joint factory in the U.S. state of Alabama.

"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".

"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.

Production is expected to begin by 2021.

Trump tweeted in March he wanted "new plants to be built here for cars sold here".

Details of an anticipated tax and incentive package for the investment were not yet known.

A formal announcement of the decision is expected Wednesday. A Mazda spokeswoman also declined to comment.

According to a report from Automotive News, the Japanese automakers decided on Huntsville, Alabama as the site of their upcoming facility, after narrowing down their choices between Alabama and North Carolina.

Toyota and Mazda made a tremendous decision in choosing Alabama for their new, cutting-edge manufacturing plant. In September Toyota announced a $106 million technology upgrade for the Huntsville plant. The Huntsville-Madison County Chamber of Commerce, as well as leaders from multiple municipalities, joined the event.

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. Pres. Trump said via Twitter.

WDRB reported in August that Bevin said he had a personal relationship with Toyota Motor Corp. Toyota said it would shift production of Corollas from Canada to the new venture rather than in Guanajuato, and would build Tacoma pickups in Mexico instead. The plan has led to speculation that Mazda would bring its new CX-4 crossover, now built in China for that market, to North 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.

"Toyota and Mazda, two of the world's most innovative automakers, have created a legacy project that will provide jobs for decades to come for Huntsville and Alabama".

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

Another factor is auto supplier jobs. The state produced 9 per cent of the cars made in the US, the centre said.

Alabama is one of more than 20 USA states that bid to host the plant. 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. It was behind MI at 19 percent; IN at 12 percent, Kentucky at 11 percent; and OH at 10 percent.

Still, Toyota and Mazda have said their collaboration will respect mutual independence and equality. "It creates a halo effect that in turn helps attract other projects". The state got its first auto plant, Mercedes-Benz, 25 years ago.

Related news: