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

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

The plant's location was made official Wednesday afternoon.

Image: (left to right) Secretary Greg Canfield, Masamichi Kogai, Alabama Govornor Kay Ivey, Akio Toyoda, Huntsville Mayor Tommy Battle and Commission Chairman Mark Yarbrough.

The city of Huntsville will vote on additional incentives today, Underwood said. Until the Mazda-Toyota joint plant, the most recent Alabama automaker had been Hyundai. That figure does not include a local incentive package still being finalized.

More news: SpaceX postpones 'static test' fire of Falcon Heavy engines

The news will likely be well-received by President Donald Trump, who has attacked automakers for not producing more of their vehicles in the United States.

The decision to pick Alabama is another example of foreign-based automakers building US factories in the South.

Toyota actually already operates an engine assembly plant in Alabama, located only 22 km away from the site of the future joint factory. North Carolina apparently was a finalist in the running for the huge factory but remains one of the few Southeast states not to land a modern carmaker. The state assembled more than 1 million vehicles in 2016 at plants employing nearly 40,000 workers. The Korean automaker opened a plant near Montgomery in 2002 that makes the Elantra compact vehicle, Sonata mid-sized sedan, the Santa Fe crossover, and 4-cylinder engines. Overall it has 36,000 US employees, not including those at dealerships. 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. Neither automaker has made anything official, but it's expected to build Corollas specifically for the USA as well as an upcoming Mazda crossover, also for the US.

More news: Coli Outbreak 'Likely' Over; Canada Declares Romaine Lettuce Safe To Eat

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

"We look forward to watching the same success story unfold for Toyota-Mazda."

The sheer cost of the plant also makes a partnership logical, as it boosts cost-efficiency and economies of scale. That is in addition to $380 million offered by the state in tax abatements, investment rebates and the construction of a worker training facility.

More news: 'All The Money in The World' Triggers Wage Gap Debate

Toyota Mississippi's landmark 2017, during which the plant built its 1 millionth Corolla, hopefully goes a long way in showing Northeast Mississippi's commitment as an automotive corridor.

Related Articles