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emfizz.com January 19, 2018


Mazda selects Alabama for $1.6 billion auto plant with 4000 jobs

11 January 2018, 06:12 | Jan Cross

Alabama expected to win $1.6 billion automaker plant that Kentucky wanted | Lexington Herald Leader

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The plant is set to begin operation in 2021 when it will produce 30,000 vehicles a year and employ 4,000 workers.

For Toyota, this joint-venture plant will be its 11th USA manufacturing facility and represents its further commitment in the US, in addition to the $10 billion in investment over five years beginning in 2017 announced a year ago.

In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina.

Following Pres. Donald Trump's tariff-tough talk in 2016, Toyota was grilled by the then-President-Elect via Twitter about moving manufacturing jobs outside the USA, threatening crippling tariffs on automakers that didn't build new facilities in the states.

"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", Toyota President Akio Toyoda said.

A Toyota auto plant employee at the automaker's Huntsville engine manufacturing plant.

. It has been reported the companies sought at least $1 billion in incentives. The plan calls for rolling out 300,000 passenger cars a year to the United States market. Mazda plans to build new crossover SUVs at the plant.

President Donald Trump had criticized Toyota for taking auto production and jobs to Mexico. Rather, this victory is the culmination of decades of hard work and leadership offered by local, state and federal officials who have consistently worked together to make the Tennessee Valley a great place to live and work, a place that encourages companies like Polaris, Remington, and now Toyota and Mazda, to rank the Tennessee Valley #1 in America.

FSMNews
Toyota-Mazda expected to announce new production plant in North Alabama

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.

Toyota has 10 existing USA factories, including an engine plant in Huntsville and two other facilities nearby in Mississippi.

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

States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies.

"This is indeed a great day in Alabama", Ivey said. The state produced 9 per cent of the cars made in the USA, the centre said.

"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.

Dziczek said that Alabama in 2017 was tied for fifth among USA states in auto production, at 9 percent with Tennessee. "It creates a halo effect that in turn helps attract other projects".

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