Mazda plant: Alabama bids to become a major auto hub

Mazda plant: Alabama bids to become a major auto hub

Mazda plant: Alabama bids to become a major auto hub

Mazda Motor Corp. President and Chief Executive Officer Masamichi Kogai and Toyota Motor Corp. Bevin also said he meant to go after the deal and beat the competition, WDRB reported.

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.

Trump praised the joint venture announcement, saying in August on Twitter: "Toyota & Mazda to build a new $1.6B plant here in the United States of America and create 4K new American jobs". With the investment, both automakers hope to prove their good American corporate citizenship and appease the Trump administration's concerns about jobs moving overseas. USA new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.

While it's not yet known the amount of tax incentives the automakers received for their new production plant, it has been reported that the two companies sought at least $1 billion in incentives, according to Reuters.

For Toyota, this joint-venture plant will be its 11th US manufacturing facility and represents its further commitment in the USA, in addition to the $10 billion in investment over five years beginning in 2017 announced a year ago.

For Mazda, the plant comes on line in a significant year that marks the start of the company's second century of operation and second half-century of sales in the U.S. The automaker is enhancing its commitment to the U.S. market and will focus efforts on manufacturing and increasing sales in the country.

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Toyota and Mazda announced plans for a new plant in August.

The new plant will be home to Mazda's new crossover SUVs and Toyota's Corolla compact sedans, which were originally going to be built in Mexico, drawing the ire of Trump. Officials in the Southern state said Alabama Gov. Kay Ivey is to make a major economic development announcement on Wednesday, but they declined to elaborate.

President Donald Trump had criticized Toyota for taking auto production and jobs to Mexico. The Center for Automotive Research says Alabama is tied with Tennessee as the fifth-largest producer of vehicles in the country past year, according to the Center for Automotive Research.

Toyota and Mazda's decision to locate in Limestone County is great news for Alabama and the Tennessee Valley! It was behind MI at 19 percent; IN at 12 percent, Kentucky at 11 percent; and OH at 10 percent.

To lure the plant, the state offered an incentive package of $370 million in tax abatements and investment rebates, Alabama Commerce Secretary Greg Canfield said. "It creates a halo effect that in turn helps attract other projects". We're told incentives for Mercedes totaled over $250 million.

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