Toyota and Mazda Select Alabama for New Auto Factory

12 Feb, 2018

Alabama edged out North Carolina as the winner in a multi-state contest for a prized Toyota Motor Corp. and Mazda Motor Corp. joint car factory worth $1.6 billion. The Japanese automakers have been narrowing the list of possible locations for months.

The shared factory Toyota and Mazda plan to open in 2021 is the new auto assembly plant to be announced under President Donald Trump, who has pressured Toyota and other car makers to make more of their vehicles in the U.S. During his November visit to Tokyo, Trump thanked executives from the two companies for their U.S. expansion plans.

It will be Toyota’s 11th assembly plant in the U.S. and the first since 2011. The automaker already has an engine factory in Huntsville, Alabama, and announced a $106 million upgrade to the facility in September.

To make way for the new plant, Toyota cut its planned investment in a facility in Guanajuato, Mexico, by 30 percent to $700 million. Trump had threatened Toyota in a tweet a year ago while president-elect to build Corolla cars in the U.S. instead of Mexico or face a “big border tax.”

To read more about the announcement, plans and implications, see the original article.

Business Xpansion Journal

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