Toyota and Mazda announce Limestone County plant

Toyota and Mazda announce Limestone County plant

The decision to pick Alabama is another example of foreign-based automakers building US factories in the South.

Those companies employ thousands of people and not all of those suppliers are near where the plants are which helps spread more economic development throughout the state.

Automakers Toyota and Mazda on Wednesday announced plans to build a new final assembly in Alabama.

The new plant -in a state Trump won by 28 points in 2016 - could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs. Production is expected to begin by 2021. The White House did not immediately comment on Tuesday.

But with USA auto industry sales are declining, the new plant could exacerbate overcapacity and add pressure to cut prices. The facility is expected to create up to 4,000 jobs. That figure does not include a local incentive package still being finalized.

In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina.

Alabama is already home to a Toyota engine plant and offers easy access to a major south-north highway. Toyota and Mazda, thank you so much. The Huntsville-Madison County Chamber of Commerce, as well as leaders from multiple municipalities, joined the event.

"Cutting taxes and simplifying regulations makes America the place to invest!", Trump said in the Twitter post.

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

After reassessing the market, Toyota Motor Corp. has changed its plan to make Corollas at a plant in Guanajuato, Mexico, now under construction, and instead will produce Tacoma pickups there, Toyota has said. Building passenger cars, commercial vehicles, and crossover SUVs, with an emphasis on the driving experience and a focus on design, engineering and efficient manufacturing, the company sells more than 1.55 million vehicles annually.

Trump's tweet also included a video segment about the Toyota-Mazda plant from Fox Business News. "A great investment in American manufacturing!"

- $210 million investment credit: Toyota Mazda will be able to claim a tax credit of up to 1.5 percent of the qualified capital investment expenses over the next 10 years.

Over the last 30 years Toyota and other automakers from Germany and other parts of Asia have built a second auto industry in the United States.

Another factor is auto supplier jobs. The state produced nine percent of the cars made in the USA, the center said. It was behind MI at 19 percent; IN at 12 percent, Kentucky at 11 percent; and OH at 10 percent.

Toyota and Mazda made a tremendous decision in choosing Alabama for their new, cutting-edge manufacturing plant. "It creates a halo effect that in turn helps attract other projects".

Two decades ago, Alabama spent an estimated $250 million to woo Daimler AG'sMercedes-Benz to put an auto plant in Tuscaloosa, sparking the birth of auto production in the state.

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