Monday, 23 April, 2018

Sweet Home Alabama: Toyota And Mazda Building New $1.6 Billion Plant

Louisiana proposed huge incentive package to attract massive Toyota-Mazda plant that went to Alabama Toyota-Mazda plant caps Alabama auto sector's successful year
Preston Stone | 12 January, 2018, 15:28

The Japanese automakers, who announced in August that they would build a new United States plant together, have selected Huntsville, Alabama, as its location, Reuters reported.

"Our investment to establish a new vehicle assembly plant with Mazda builds on the strong success we have enjoyed in Alabama where we produce engines for the North American market", Toyoda said. Mazda will produce crossovers alongside Toyota Corolla compact cars at the joint facility. 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.

This morning, the president tweets his congratulations to the state for landing the future Toyota-Mazda plant. 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 was valued at $380 million, but did not include the value of local property tax exemptions or the value of more than 1,200 acres of donated land for the site, which Louisiana Economic Development Secretary Don Pierson said makes Alabama's package comparable to Louisiana.

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

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

The plant, which is expected to begin operations by 2021, will create about 4000 new jobs in the region. With their experience already in building the Corolla, they have a legitimate shot in being suppliers for the Toyota-Mazda plant, as well. Overall it has 36,000 USA employees, not including those at dealerships. Toyota and Mazda, thank you so much.

"By making such cars here in Alabama, we hope that over time our plant will come to occupy a special place in the hearts of our employees and the local community". Other foreign automakers have built plants across the South as well. The statewide unemployment rate was 3.5% in November.

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