Alabama Chosen For Toyota-Mazda Plant

HUNTSVILLE, AL - Continuing a trend that began in the 1990s with the announcement of a Mercedez-Benz manufacturing plant in Vance, Alabama, another automobile manufacturer has reportedly chosen Alabama for its latest manufacturing plant. Sources say a site near Huntsville is expected to be announced as the destination of a $1.6 billion Toyota-Mazda plant, which is expected to create 4,000 jobs.

According to a report from the Birmingham Business Journal, Toyota's existing operations in Huntsville and its familiarity with the area likely played a role in the decision to choose Alabama over a site in North Carolina that was also a finalist for the plant. Also, auto companies have chosen Alabama due largely to lower wages and to avoid the United Auto Workers union, which is stronger in Northern states.

Some economic development leaders in the state worried that the results of the Senate election in December would affect Alabama's chances of landing the auto plant, namely if Roy Moore, the Republican candidate whose image took a beating nationally, had defeated Democrat Doug Jones. Jones won, and was sworn in last week.

“The Toyota and Mazda decision to select Huntsville as the new location for their joint auto plant is both a testament to Northern Alabama’s exceptional advanced manufacturing workforce and further proof that choosing common ground over divisiveness will drive business to our state,” Jones said Wednesday. “Today’s announcement is a tremendous step forward for Alabama’s growing technology sector and our ability to recruit quality businesses in the future. We must build on this momentum, and continue to focus our efforts on issues that affect hard-working Alabamians like creating good-paying jobs and providing students with the tools to attain them.”

Mazda and Toyota will split the cost of the plant equally, according to reports, and plan to work together on various advanced auto technology, such as electric vehicles, safety features and connected cars, as well as products that they could supply each other. For Toyota, this joint-venture plant will be its 11th U.S. manufacturing facility and represents its further commitment in the U.S., in addition to the $10 billion in investment over five years beginning in 2017 announced a year ago.

Alabama is currently home to manufacturing plants for Honda, Hyundai and Mercedez Benz in addition to the Toyota engine plant in north Alabama. The Toyota-Mazda plant is expected to begin operating in 2021. It is to be able to build 300,000 vehicles per year and will produce the Toyota Corolla compact car for North America and a new small SUV from Mazda, the companies have indicated.

“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,” said Mazda Motor Corp. CEO Masamichi Kogai. “By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Huntsville and Alabama."

Huntsville Mayor Tommy Battle hailed the Toyota-Mazda decision as a milestone development for the North Alabama city. “With this announcement, our world changes overnight,” Battle said. “Toyota and Mazda, two of the world’s most innovative automakers, have created a legacy project that will provide jobs for decades to come for Huntsville and Alabama. It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation.”

Alabama is the fifth largest producer of cars and light trucks nationally.

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