After much consideration, Huntsville, Alabama was chosen as the site of a new automobile plant that is a joint venture of Mazda and Toyota. The companies plan to invest as much as 1.6 billion dollars into building the new factory. When the factory is completed in 2021, it is expected to employ up to 4,000 new workers.
The announcement that Hunstville would be the site of the new factory is somewhat unexpected. Many industry insiders expected that the factory would be built at a location in North Carolina. However, the city of Huntsville provided significant incentives to both Toyota and Mazda to build their new factory in Huntsville.
Toyota already has an engine factory located in Huntsville. They also announced an over 100 million dollar investment in the engine factory. Mazda currently has no manufacturing facilities within the United States.
Toyota plans to build its new Toyota Corolla model at the Huntsville site. Toyota already builds many Corollas at its site it Tupelo, Mississippi. That plant will remain in operation. Since the two factories are near one another, supplying parts to build the car will be more economical and convenient. Mazda plans to build a small crossover SUV type vehicle at the plant.
Toyota had planned to invest up to 700 million dollars at a plant in Mexico in order to ramp up their North American Corolla production. However, Toyota cancelled these plans. Some analysts attribute this response by Toyota to a statement by Donald Trump that threatened Toyota with a tax on Corollas brought to the United States from Mexico.