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Toyota, Mazda to build new $1.6bn auto manufacturing plant in Alabama, US

ABR Staff Writer Published 12 January 2018

Toyota and Mazda have selected the US state of Alabama for new auto manufacturing facility.

The new plant will be located in Huntsville about 14 miles from Toyota’s plant. It will be capable of building 300,000 vehicles per year.

The production at the plant will be split equally between the two automakers. Mazda will produce its crossover models for the North American market, and Toyota will manufacture its Corolla model.

Mazda and Toyota plan to make equal funding contributions for the joint venture, which represents a $1.6bn investment.

The plant, which is expected to begin operations by 2021, will create about 4000 new jobs in the region.

For Toyota, this joint venture plant will be its eleventh manufacturing facility in the US. In January 2017, the company announced that it will invest $10bn in the US over the next five years.

Toyota Motor president Akio Toyoda said: “Our investment to establish a new vehicle assembly plant with Mazda builds on the strong success we have enjoyed in Alabama where we produce engines for the North American market.

“Starting from 2021, I’m confident that we will run a highly competitive plant, by bringing together the expertise of Toyota and Mazda as well as the excellent Alabama workforce. We are committed to being another ‘best-in town’ company in the city of Huntsville and the state of Alabama, a new hometown for Toyota and Mazda.”

For Mazda, the plant is expected to mark the start of its second century of operations and second half-century of sales in the country. 

The automaker is improving its commitment to the US market and will focus efforts on manufacturing and increasing sales in the country.

Mazda Motor president and CEO Masamichi Kogai said: “Mazda makes cars with a clear vision of how we want to inspire people, contribute to society and help preserve the beauty of the earth.

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

Image: (left to right) Secretary Greg Canfield, Masamichi Kogai, Alabama Govornor Kay Ivey, Akio Toyoda, Huntsville Mayor Tommy Battle and Commission Chairman Mark Yarbrough. Photo: Courtesy of Toyota Motor Sales, U.S.A., Inc.