There will be new jobs in Alabama as Toyota and Mazda announced plans for a new plant.
According to The Balance, “U.S. manufacturing is the largest in the world,” and it’s set to get bigger with the announcement of a giant new factory. Toyota and Mazda have recently announced they will build a new manufacturing facility in Huntsville, Alabama. The Toyota plant in Alabama will be one of many assembly factories that pieces together the beloved and reliable vehicles.
The Gargantuan Toyota Plant in Alabama
The plant is expected to be enormous; it will cost about $1.6 billion to construct and is set to open in 2021. The new Toyota building will employ about 4,000 Alabamians and, when running at full capacity, will pump out 300,000 vehicles annually.
As noted in a Toyota press release, “…this joint-venture plant will be its 11th U.S. manufacturing facility and represents its continued commitment in the U.S., in addition to the $10 billion dollar investment over the next 5 years that was announced in January 2017.”
The Sister Plant
The Toyota plant in Alabama is not the first. In fact, this new facility will be about 15 miles down the road from a fully operational Toyota plant. The close proximity assists in the easy migration of talent, parts, and equipment between the two factories as they work towards the goal of providing Americans with pristine Corollas and Mazda crossovers.
The Governor of Alabama, Kay Ivey, and the Mayor of Huntsville, Tommy Battle, are ecstatic about the new factory. They see it as a huge win for the their region and the American manufacturing sector.
Alabama Business, Gov. Kay Ivey stated, “it is my honor to announce that Toyota and Mazda have chosen Alabama as home of their new production plant,” at a recent news conference.
Battle shared the same sentiment by stating, “Mazda and Toyota, 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.”
America Loves Toyota and Mazda
The Toyota plant in Alabama makes sense. While other automakers have struggled to increase year-over-year sales, Toyota has beaten estimates. The 4Runner, Prius, and Tacoma are revered vehicles in the American automotive market, and the whole Toyota line has a reputation for dependability.
Mazda is delivering a lot of value to its customers. It offers Audi level luxury and an affordable price. This move by Mazda is an attempt to capitalize on a sector of the market it believes is underserved.
The Trump Effect
It’s unclear whether or not the warning shot fired at Toyota from Donald Trump via Twitter had anything to do with their decision to build the factory in the U.S.
Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax.
— Donald J. Trump (@realDonaldTrump) January 5, 2017
With the threat of a border tax, an unsettled NAFTA agreement, and a stern warning from the President, it was advantageous for Toyota and Mazda to build their plant in the states.
Mexico is known for a skilled workforce and close proximity to the U.S. Toyota already has a plant in Mexico and could have set up the same sister-style factory next to its existing one. The decision to build the plant in Alabama was most likely based on a multitude of factors but a personal call out from Trump was surely discussed among Toyota and Mazda decision makers.