Toyota, Mazda to build $1.6 billion plant in Alabama
Toyota, Mazda to build $1.6 billion plant in Alabama
Locations of major vehicle plants in Alabama
12 January, 2018, 15:33
Production capacity at the new plant will be 300,000 units, and the United States $1.6 billion cost of the facility's construction will be shared evenly by the two companies.
The Huntsville site is near Toyota Motor Manufacturing Alabama, which turned out almost 700,000 engines a year ago, powering one-third of the Toyota vehicles built in the U.S. The plant built its 5 millionth engine in February and in September announced a $106 million investment to install a new 4-cylinder production line to produce advanced engines.
Mazda and Toyota plan to make equal funding contributions for the joint venture, which represents a $1.6bn investment. The factory is expected to create 4,000 new jobs, which President Donald Trump praised during his November trip to Tokyo. "Their decision to locate this new facility in Huntsville is a testament to the talented workforce in our state".
"With this announcement, our world changes overnight", said Tommy Battle, mayor of Huntsville. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation". For Mazda, the plant represents an enhanced commitment to the US market with an increased focus on manufacturing and sales in the country.
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Mazda Motor president and CEO Masamichi Kogai said: "Mazda makes cars with a clear vision of how we want to inspire people, contribute to society and help preserve the beauty of the earth". The Huntsville area has 50,000 auto-related jobs, Carter said, calling the new plant an "additive to an already-robust manufacturing sector in northern Alabama".
North Carolina officials reportedly believed the cost was enough because of the anticipated supplier companies that would flock to the state as a result of Toyota-Mazda making a home there. "Starting from 2021, I'm confident that we will run a highly competitive plant, by bringing together the expertise of Toyota and Mazda as well as the excellent Alabama workforce". In 2017, Alabama was tied for fifth place with Tennessee among USA states in auto production, behind Michigan, Indiana, Kentucky and Ohio.
"It was especially exciting to see both new and existing companies make investments and announce projects that will position the state as an important location in the global auto industry for years to come".
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