Toyota and Mazda team up to build a $1.6 billion USA factory

Toyota and Mazda team up to build a $1.6 billion USA factory

It will be able to build 300,000 vehicles per year and will produce the Toyota Corolla compact auto for North America and a new small SUV from Mazda, the companies have said.

Japanese automakers Toyota and Mazda on Wednesday announced plans to build a huge $1.6 billion joint-venture plant in Alabama that will eventually employ about 4,000 people.

Trump tweeted in March he wanted "new plants to be built here for cars sold here". The plant is supposedly scheduled to open in 2021 and will be built concurrently with a series of upgrades to Toyota's existing Huntsville plant, which were announced in September of 2017 according to Reuters. Mazda has never had its own U.S. factory, though it did share some production with Ford at one time.

The new Huntsville plant will be just 14 miles (22 kilometers) from Toyota Motor Manufacturing of Alabama, which produces four-cylinder, V-6 and V-8 engines for several Toyota models. US new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.

For Toyota, this joint-venture plant will be its 11th USA manufacturing facility and represents its continued commitment in the US, in addition to the $10 billion dollar investment over the next 5 years that was announced in January 2017. The Raleigh News & Observer reported Tuesday that North Carolina had lost out on the project.

"We are committed to becoming a "best-in-town company" in the city of Huntsville and the state of Alabama, a new hometown for Toyota and Mazda".

President Donald Trump had criticized Toyota for taking auto production and jobs to Mexico. "Build plant in USA or pay big border tax". Mazda plans to build new crossover SUVs at the plant.

Toyota and Mazda are expected to split the cost of the plant, but state and local governments expect to heavily incentivize the automakers for locating in Alabama. "A great investment in American manufacturing!"

"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S".

Last year, Toyota acquired a 5-percent stake in Mazda and Mazda acquired a 0.5-percent stake in Toyota to jointly develop competitive electric vehicles.

Mazda Motor Corporation President and Chief Executive Officer Masamichi Kogai and Toyota Motor Corporation President Akio Toyoda joined Gov. Ivey and Mayor Battle for the announcement.

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 US, threatening crippling tariffs on automakers that didn't build new facilities in the states.

Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa in two decades ago. It produces most of the cars and trucks it sells in the those US plants and exports some of those cars to other markets.