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Sweet Home Alabama: Toyota And Mazda Building New $1.6 Billion Plant

Industry News / Comments

Alabama has won the multi-state bidding war.

Late last summer Toyota and Mazda announced a joint partnership to build a new $1.6 billion production plant somewhere in the US. Doing so would not only create jobs and boost each brand's credibility in the US, but would also likely please President Trump, who has been very vocal in his support for US-based manufacturing. Several states wanted the plant which will put 4,000 people to work and will have a 300,000 annual production capacity. Question is, which state won the (tax break) bidding war? Alabama.

According to Reuters, Alabama will be the site of the new plant and represents a victory for Trump. Conveniently enough, Alabama is also home to a Toyota engine plant as well as a large network of suppliers. Exact details of the deal have yet to be announced, but sources indicate the automakers were seeking at least $1 billion in incentives. So, what will be built at this new facility? Neither automaker has made anything official, but it's expected to build Corollas specifically for the US as well as an upcoming Mazda crossover, also for the US. Previously, Toyota was criticized for considering a plan to build US market Corollas in Mexico. Instead, the Tacoma pickup truck will be built south of the border.

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Aside from Toyota's original production facility and the upcoming one, Alabama is also home to a Mercedes-Benz plant. In 2017, Alabama was tied for fifth place with Tennessee among US states in auto production, behind Michigan, Indiana, Kentucky and Ohio.