Toyota, Mazda to build $1.6B joint plant in Alabama

Toyota, Mazda to build $1.6B joint plant in Alabama

We asked our Facebook audience why they think Toyota and Mazda passed over North Carolina for an auto production plant. The plant will have the capacity to build 300,000 vehicles annually, with production split evenly between two lines for Mazda to produce its crossover model that will be newly introduced to the North American market and Toyota to make its global best seller Corolla model.

"Though that final site selection has occurred in Alabama, we believe we've built a strong case for future automotive manufacturing projects to locate in Louisiana", Pierson said.

Akio Toyoda, president of Toyota Motors, said the new facility is something of a homecoming since the company already has one plant in the state. The companies originally announced plans for a USA plant in August when the two Japanese automakers signed a joint venture agreement, though the exact location was not known at that time.

Alabama's offer to win the plant, which is expected to employ about 4,000 people, was valued at around $380 million. "By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Alabama and Huntsville".

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"The partnership between Mazda and Toyota will expand innovative automotive manufacturing in Alabama", said Gov. Kay Ivey. With the nation's most productive manufacturing workforce and No. 1 state workforce training program, Louisiana can make a compelling case for new investment.

Alabama ranked 44th out of 48 mainland USA states in overall manufacturing costs past year, contributing to its appeal, said John Boyd, a site selection specialist based in Princeton, New Jersey, who didn't work on this deal. 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.

In Montgomery, Hyundai Motor Manufacturing Alabama produced 328,400 cars and SUVs during 2017, along with 620,159 engines. Honda and Toyota followed by putting engine plants in the state. 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.

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