News Worms
News Worms


Mazda expected to announce new production plant in North Alabama

Mazda expected to announce new production plant in North Alabama

Alabama's Commerce Secretary Greg Canfield called the project, which was dubbed "New World", transformational and said "these are the kinds of projects that would win you a national championship, if there was such a thing in economic development".

A person briefed on the decision says Japanese automakers Toyota and Mazda have picked Alabama as the site of a new $1.6 billion joint-venture manufacturing plant. By making such cars here in Alabama, we hope that over time our plant will come to occupy a special place in the hearts of our employees and the local community. In September Toyota announced a $106 million technology upgrade for the Huntsville plant.

The site for the new plant in Huntsville sits just 14 miles from Toyota Motor Manufacturing of Alabama, which produces four-cylinder, V-6 and V-8 engines for several Toyota models.

Among U.S. states, Alabama is already the fifth largest producer of cars and light trucks.

Alabama was tied with Tennessee as the fifth-largest producer of vehicles in the country past year, according to the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan.

The new plant -in a state Trump won by 28 points in 2016 - could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs.

Toyota has 10 existing USA factories, including an engine plant in Huntsville and two other facilities nearby in Mississippi.

"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S". Many automakers have announced expansions of facilities or new jobs but no other new USA auto plants have been announced.

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.

The decision - a boon for President Donald Trump's drive to bring investment and jobs to the country - was made based on the state's efficient logistics network and concentration of auto parts makers, among other factors.

An official announcement is expected Wednesday.

Trump tweeted in March that he wanted "new plants to be built here for cars sold here".

There will be two production lines, which are expected to have an annual capacity of some 300,000 units.

The plant is set to begin operation in 2021 when it will produce 30,000 vehicles a year and employ 4,000 workers.

States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies.

Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago. These states generally have good transportation infrastructure, business-friendly regulators and anti-union politicians.

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