Japanese automakers Toyota and Mazda have selected the state of Alabama for its $1.6 billion joint-venture US auto manufacturing plant. The facility is expected to begin operating in 2021 with equal sharing of costs by the firms. According to the press release, the cost of the plant makes the partnership logical as it allows for a facility that can boost cost-efficiency and economies of scale for the benefit of both firms.
The site selected is anticipated to be in the Huntsville area in Limestone County, Alabama and is expected to employ 4,000 individuals. A Toyota engine factory with 1,500 employees is presently operating near the desired site. The new plant will 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 according to the press release. Plans for Tacoma trucks to be produced in Mexico have not been altered.
Toyota and Mazda also expressed plans to explore further joint ventures to work together on advanced auto technology, such as electric vehicles, safety features and connected cars, along with products that they could supply to each other. Toyota, which makes the Prius hybrid, already provides hybrid technology to Mazda, which makes compact cars for Toyota at its Mexico plant.