Toyota, Mazda walked away from $1.5 billion incentive package from NC

Darnell Taylor
January 12, 2018

For Toyota, this joint-venture plant will be its 11 US manufacturing facility and an addition to the $10 billion dollar investment over the next 5 years that was announced in January 2017.

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 new plant in Huntsville - already a hub for the region's budding aerospace industry - will produce 300,000 vehicles per year, a combination of the Toyota Corolla compact auto and a new small crossover SUV from Mazda.

"I think the important thing is, there's a site here in Huntsville, Alabama and Limestone County that will have an additional 1,000 acres for a long-term expansion", Davis said. The facility is expected to create up to 4,000 jobs and production is expected to begin by 2021.

Alabama offered an incentive package of more than $370 million the Toyota-Mazda plant to build in the state. Alabama and its neighbors have also pioneered the development of state-run worker training programs, he said. Toyota and Mazda, thank you so much.

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A workforce already well-versed in the automotive industry also helped contribute to the site selection. The state produced 9 percent of the cars made in the country, the center said. Meanwhile, Mazda will become the latest automaker to establish a final assembly plant in the U.S. To entice manufacturers, Southern states have used a combination of lucrative incentive packages, low-priced labor and a pro-business labor environment since the United Auto Workers union is stronger in Northern states.

"This project will really put Alabama at the center of the Southern automotive industry", Canfield said.

A person briefed says the plant will be in Alabama. Data from the Center for Automotive Research show MI built 19 percent of the vehicles manufactured in the USA a year ago. Mazda plans to build an SUV at the new facility as the Japanese automaker moves to improve a model line-up that has historically relied more on cars than utility vehicles.

The plant's location was made official Wednesday afternoon. Alabama started on the road to becoming an auto manufacturing hub in 1993 when Mercedes chose it as the location for a manufacturing plant after the state offered a then-eye popping $250 million incentive package. Conveniently enough, Alabama is also home to a Toyota engine plant as well as a large network of suppliers.

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