SA loses out on new Toyota-Mazda factory, AP source says

  • SA loses out on new Toyota-Mazda factory, AP source says

SA loses out on new Toyota-Mazda factory, AP source says

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.

- $210 million investment credit: Toyota Mazda will be able to claim a tax credit of up to 1.5 percent of the qualified capital investment expenses over the next 10 years.

The plant will be located in Huntsville-annexed Limestone County. The facility is expected to create up to 4,000 jobs.

The Alabama Department of Commerce shows 150 of the large automotive suppliers operate in the state, providing the logistical strength that Kristin Dziczek, a researcher at the Center for Automotive Research in MI, said helped land the plant.

We are honored Alabama is truly honered to have been chosen for this project.

"With this announcement, our world changes overnight", Huntsville Mayor Tommy Battle said.

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.

Officials in Alabama are expected to hold a news conference Wednesday afternoon to announce the plant site. The plan calls for rolling out 300,000 passenger cars a year to the U.S. market.

"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".

The decision to pick Alabama is another example of foreign-based automakers building USA factories in the South.

But Alabama had history and a parts supply chain on its side. The plan for the Alabama plant appears to reflect Trump's calls for more investment and jobs in the United States. "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". "Thank you for believing in the potential of our people in the great state of Alabama".

The new Huntsville plant will be just 14 miles (22 kilometers) from Toyota Motor Manufacturing of Alabama, which produces four-cylinder, V-6 and V-8 engines for several Toyota models.

States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies. It will be Toyota's eighth such facility in North America and the second for Mazda. The state produced nine percent of the cars made in the US, the center said.

USA sales of small cars fell almost 10 percent previous year as buyers continued a massive shift toward SUVs and pickup trucks. Currently, Mazda does business in more than 130 countries around the world, and produces vehicles in Japan, Mexico, China and Thailand. Mazda plans to build new crossover SUVs at the plant.

Mazda Motor Corporation is responsible for Mazda's operations on a global basis, including all aspects of manufacturing, research and development, sales, marketing and all worldwide operations. Headquartered in Richmond Hill, Ontario, Mazda Canada has a nationwide network of 166 dealerships.