Toyota, Mazda announce plan to build $1.6bn plant in Alabama

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Home Mazda Mazda and Toyota’s new Alabama plant powers up in 2021 By Marc Carter

The state's automakers built more than a million vehicles in 2016.

Alabama's total incentive package to land Toyota and Mazda's new US factory will top at least $700 million after local incentives are added. In addition to thousands of jobs likely to be created by the first new vehicle assembly plant to be announced in the US during the Trump administration, the plant has numerous ramifications for new auto buyers across the country.

Alabama's Commerce Secretary Greg Canfield called the project, which was dubbed "New World", transformational and said "these are the kinds of projects that would win you a national championship, if there was such a thing in economic development". The Megasite Project will proceed.

There are no auto manufacturing plants in North Carolina and it doesn't appear as if that will change anytime soon.

Berger praised Copeland and Gov. Roy Cooper for their efforts to coax the plant to North Carolina.

Why it could win: low-priced labor, bustling auto sector.

But could the companies find enough skilled workers in the Triad?

But with US auto industry sales declining, the new plant could exacerbate overcapacity and add pressure to cut prices.

The plant is slated to cost $1.6 billion and it will have an annual capacity of 300,000 units.

An official announcement by company and state officials is expected today in Montgomery, sources knowledgeable about the matter said.

Research conducted by a broadcasting company in November showed that about 53 percent of vehicles sold in the U.S. by the six major Japanese automakers were built there, while the rest were produced in Japan, Mexico, Canada, and elsewhere.

Governor Ivey, speaking at an event in Alabama's capital city, welcomed the automakers to the state and said she looks forward to a long-lasting relationship that will spark a ripple effect of other investment and employment through automotive suppliers.

Alabama is the fifth largest producer of passenger vehicles in the U.S. Automobile manufacturing now employs about 57,000 Americans in Alabama. Instead, the plant will probably be state-of-the-art with the materials, resources, and assembly techniques required to build electrified, self-driving cars.

Why it could lose: If the state is viewed as not having enough of a manufacturing workforce.

Many observers thought short-listed North Carolina had an edge over Alabama because it has no big auto assembly plants, unlike Alabama, said Kristin Dziczek, director of the industry, labor and economics group at the Center for Automotive Research in Ann Arbor, Michigan.

Employment in the automotive sector in Alabama now tops 57,000, with 25,000 jobs in the automotive supplier chains among more than 160 companies. Inc., a location consultant.

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