Toyota, Mazda Select Alabama for New Manufacturing Plant

John Archibald

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.

Leaders at Toyota and Mazda recently selected Huntsville, Alabama, as the site of their new joint-venture manufacturing plant.

According to Reuters, Alabama will be the site of the new plant and represents a victory for Trump.

Production capacity at the new plant will be 300,000 units, and the United States $1.6 billion cost of the facility's construction will be shared evenly by the two companies.

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Alabama's offer was valued at $380 million, but did not include the value of local property tax exemptions or the value of more than 1,200 acres of donated land for the site, which Louisiana Economic Development Secretary Don Pierson said makes Alabama's package comparable to Louisiana. The state assembled more than 1 million vehicles in 2016 at plants employing nearly 40,000 workers. It is a finalist for the North American Utility of the Year Award, which will be presented next week at the North American International Auto Show in Detroit.

Alabama's history as an auto-producing region started in 1998 when Mercedes built a plant there.

Louisiana proposed a smart incentive offer that would have guaranteed strong return on investment for the state and a beneficial operating environment for the prospect companies.

Toyota executives and Alabama Governor Kay Ivey are slated to attend that announcement, sources said.

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Limestone County is preparing a mega site for the estimated $1.6 billion plant.

Toyota Mississippi's landmark 2017, during which the plant built its 1 millionth Corolla, hopefully goes a long way in showing Northeast Mississippi's commitment as an automotive corridor.

Beyond that, suppliers continue to build new plants and expand existing operations in Alabama, including BOCAR, which plans a $115 million plant in Huntsville that will create more than 300 jobs. In September, Indiana-based Autocar revealed plans for a $120 million, 746-job plant in Center Point and Birmingham that will produce heavy-duty cab-over-engine trucks. He said the company has no additional announcements to make at this time. President Akio Toyoda. "We are committed to being another "best-in town" company in the city of Huntsville and the state of Alabama".

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