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Toyota, Mazda to build $1.6 billion plant in Alabama

Toyota, Mazda to build $1.6 billion plant in Alabama

"By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Huntsville and Alabama", he added.

A formal announcement of the decision is expected Wednesday.

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

"Our investment to establish a new vehicle assembly plant with Mazda builds on the very success we have enjoyed in Alabama, where we produce engines for the North America market", Toyoda said.

WDRB reported in August that Bevin said he had a personal relationship with Toyota Motor Corp.

It's now official - Huntsville, Ala. has been selected by Toyota Motor Corporation and Mazda Motor Corporation as the site of their new $1.6 billion joint-venture auto manufacturing plant.

A Toyota automaker employee moves an engine at the Toyota engine assembly line in Huntsville, Alabama November 13, 2009.

Expected to open in 2021, the plant breaks ground at a time where USA auto sales are on a decline, meaning increased pressure to cut costs could jeopardize the automakers' plans to scale up US production. The plan has led to speculation that Mazda would bring its new CX-4 crossover, now built in China for that market, to North America.

US President Donald Trump previous year tweeted criticism of Toyota for planning to build a factory in Mexico to distribute to the US market.

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.

Huntsville marks the 11th US factory for Toyota, and the first for Mazda since it pulled out of a joint-venture plant still operated by Ford Motor Company in Flat Rock, Michigan.

Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit Three automakers in size and employment, but with newer, and fewer unionized, plants. The state produced 9 per cent of the cars made in the US, the centre said.

The joint venture will receive roughly $380 million in incentives from the state of Alabama, including a jobs credit of $90.6 million and an investment credit of $210 million over 10 years, according to a release from the Alabama Department of Commerce. 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.

The joint venture represents a $1.6 billion investment that Mazda and Toyota plan to make with equal funding contributions.

Toyota and Mazda say annual production at Huntsville will be split evenly between the two automakers.

Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago.


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