Published: Thu, January 11, 2018
Markets | By Erika Turner

Toyota, Mazda announce $1.6 bln plant for Huntsville, Alabama

Toyota, Mazda announce $1.6 bln plant for Huntsville, Alabama

Alabama will be the site of a new $1.6 billion Toyota Motor Corp and Mazda Motor Corp auto plant, a victory for President Donald Trump who had prodded manufacturers to build new USA facilities and threatened tariffs on foreign production, sources said on Tuesday.

Automakers Toyota and Mazda on Wednesday announced plans to build a new final assembly in Alabama.

Forbes reported on Tuesday, as news of Toyota-Mazda's decision to pick Alabama first leaked, that the plant represented "a big win" for Trump. Toyota and Mazda, thank you so much.

"Together, I am confident we will create yet another "Built in America" success story", Toyoda said.

But with USA auto industry sales are declining, the new plant could exacerbate overcapacity and add pressure to cut prices. Our 1,800 North American dealerships (nearly 1,500 in the U.S.) sold more than 2.6 million cars and trucks (2.4 million in the U.S.) in 2017 - and about 85 percent of all Toyota vehicles sold over the past 15 years are still on the road today.

"It's is a great day for Alabama", Former Alabama Governor Jim Folsom, Jr. said. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation".

Dziczek said that Alabama in 2017 was tied for fifth among USA states in auto production, at 9 percent with Tennessee.

Trump to attend Davos economic forum: White House
This year, Trump will discuss his " America First " agenda in person, said White House Press Secretary Sarah Sanders. She added that Trump wants to promote his policies for strengthening American businesses, industries and workers.

North Carolina has been beefing up its auto manufacturing for years but has not been able to land a major auto manufacturer.

Two decades ago, Alabama spent an estimated $250 million to woo Daimler AG'sMercedes-Benz to put an auto plant in Tuscaloosa, sparking the birth of auto production in the state. Honda and Toyota followed by putting engine plants in the state. A Kia Motors Corp assembly plant operates near the Alabama border in Georgia.

Still, Toyota and Mazda have said their collaboration will respect mutual independence and equality. They announced a capital alliance in August and plans to jointly develop technology for electric vehicles. USA 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.

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

Several states had competed for the coveted project, which will be able to turn out 300,000 vehicles per year and will produce the Toyota Corolla compact auto for North America and a new small SUV from Mazda.

"We have been reviewing the best production strategy for our business", he told reporters in Tokyo at the time.

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.

Like this: