Mazda, Toyota select Alabama for new U.S. auto manufacturing plant
Mazda, Toyota select Alabama for new U.S. auto manufacturing plant
Source: New Toyota-Mazda factory to be built in Alabama
11 January, 2018, 03:12
Governor Ivey, speaking at an event in Alabama's capital city, welcomed the automakers to the state and said she looks forward to a long-lasting relationship that will spark a ripple effect of other investment and employment through automotive suppliers.
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. That is a strong testament to the quality of the location, resources, people and government leadership that Alabama offers.
I am extremely proud that Huntsville was selected by Toyota and Mazda for the joint auto production plant.
Those companies employ thousands of people and not all of those suppliers are near where the plants are which helps spread more economic development throughout the state.
The companies announced they would build a new plant at an undetermined location in August a year ago under a capital tie-up and almost 20 US states sought to land the facility.
Folsom who helped land Mercedes in Tuscaloosa County believes the Toyota-Mazda deal will add even more growth to Alabama's booming auto manufacturing industry which so far has produced almost 60,000 jobs and millions of vehicles.
The new plant -in a state Trump won by 28 points in 2016 - could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs.
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. US new vehicle sales fell 2 percent in 2017, after hitting a record high in 2016, and are expected to fall further in 2018. USA new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.
Trump has made it a priority in his presidency to bring industry that had shipped jobs overseas back to the United States as well as building up domestic job opportunities.
Toyota North America chief executive Jim Lentz said in an interview on Wednesday that pressure from Trump was not a factor in the decision to build the plant.
Mazda and Toyota said they still need approvals and authorization by antitrust agencies for the new joint venture.
Trump tweeted in March that he wanted "new plants to be built here for cars sold here".
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.
There will be two production lines, which are expected to have an annual capacity of some 300,000 units. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians.
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