Mazda to build $1.6B production facility in Alabama


Japanese automakers Toyota and Mazda confirmed this afternoon they are building a joint-venture auto plant in Alabama.

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.

The joint venture represents a $1.6 billion investment that Mazda and Toyota plan to make with equal funding contributions. Many automakers have announced expansions of facilities or new jobs but no other new USA auto plants have been announced. Production is expected to begin by 2021.

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

With this announcement, our world changes overnight. The area has many parts factories that provide products to the automakers.

Folsom who helped land Mercedes in Tuscaloosa County believes the Toyota-Mazda deal will add even more growth to Alabama's booming auto manufacturing industry which so far has produced almost 60,000 jobs and millions of vehicles.

Toyota President Akio Toyoda and Mazda President and Chief Executive Officer Masamichi Kogai joined Alabama Governor Kay Ivey in Montgomery at an event to announce the decision.

For Mazda, the plant comes on line in a significant year that marks the start of the company's second century of operation and second half-century of sales in the U.S. The automaker is enhancing its commitment to the U.S. market and will focus efforts on manufacturing and increasing sales in the country.

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

"Our investment to establish a new vehicle assembly plant with Mazda builds on the very success we have enjoyed in Alabama, where we produce engines for the North America market", Toyoda said. Today's announcement speaks volumes about the capabilities and effectiveness of our state's skilled workforce, highlighting the continued truth that Alabama is open for business.

The new plant will employ some 4,000 people, with Toyota planning to produce Corolla compact cars and Mazda small- to medium-sized sport utility vehicles.

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

Huntsville Mayor Tommy Battle hailed the Toyota-Mazda decision as a milestone development for the North Alabama city.

Among U.S. states, Alabama is already the fifth largest producer of cars and light trucks. We share company resources and extensive know-how to support non-profits to help expand their ability to assist more people move more places.

The two firms previous year formed a capital alliance and announced a plan to build the factory for 1.6 billion dollars in the United States by 2021.