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Toyota, Mazda plan to build factory in Alabama

Toyota, Mazda plan to build factory in Alabama

Alabama will be the site of a new $1.6 billion Toyota Motor Corp and Mazda Motor Corp auto plant, a victory for President Donald Trump who had prodded manufacturers to build new USA facilities and threatened tariffs on foreign production, sources said on Tuesday.

After their announced manufacturing partnership in the US last August, Toyota Motor Co. and Mazda Motor Corp. decided on the site of their $1.6 billion joint production plant.

Alabama's governor made it official on Wednesday: The southern state has won the competition to snag a massive Toyota-Mazda manufacturing plant, beating out North Carolina.

Toyota Motor Co. and Mazda Motor Corp. today officially announced that they've chosen Alabama as the site for their upcoming joint plant.

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The plant will be located near Huntsville.

Toyota had originally planned to build a new Corolla plant in Mexico, but after the joint venture plans were announced in August, Toyota changed course and chose to build the Tacoma pickup at the plant in Mexico and the new Corolla at the new US plant.

Ivey said, "This is indeed a great day in Alabama".

Workers at the plant are expected to build 300,000 vehicles per year and produce the Toyota Corolla compact auto starting in 2021.

Toyota Motor President Akio Toyoda and Mazda Motor President Masamichi Kogai bow at a joint news conference in Tokyo, Japan August 4, 2017. "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". 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.

"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".

Amid tightening environmental regulations in the US, the likely challenge will be to create new added value, such as locally producing electric cars and replacing production models to better reflect demand. The plan for the Alabama plant appears to reflect Trump's calls for more investment and jobs in the United States.

The companies originally announced plans for a USA plant in August when the two Japanese automakers signed a joint venture agreement, though the exact location was not known at that time. Toyota and Mazda, thank you so much.

In the coming months, after obtaining approvals and authorization by antitrust agencies, the new joint venture will be established, and site preparations will begin with the start of production in 2021.

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