Toyota, Mazda to build $1.6 billion plant in Alabama

Alabama's vibrant auto manufacturing sector could help or hurt. "And somebody's going to lose".

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. "A plant is a 50-year investment", he said.

But what will that mean for Corolla production in Blue Springs?

"They are really well paying jobs", says Wilson. The region, where unions are weaker and labor costs lower than the USA auto industry's Detroit roots, has seen new factories multiply.

A 2 year course teaches these students first hand what it would be like to work for a manufacturing company. Other forecasters said the aging of baby boomers, and the emergence of a younger generation less keen on owning cars, would also dampen demand.

It is unclear how many indirect jobs will be created at the plant, such as at suppliers that may locate nearby, or how much in tax credits Toyota and Mazda will receive to offset startup and/or operating costs.

"There's risk there", Mr. Wakefield said. The two plants will be only 14 miles apart.

The prized $1.6 billion auto factory awarded to Alabama by Toyota Motor and Mazda Motor could be an even bigger win than expected, as the site's size leaves plenty of room for future expansions. Toyota and Mazda will invest an equal amount to finance the development of their joint facility, where a whopping 300,000 vehicles will roll out annually.

The Corolla is also made in Cambridge, Ontario.

Toyota plans to produce Corolla compact vehicles, while Mazda plans small-to-medium sized sport utility cars once the factory opens.

Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago.

Here's a look at some of the key talking points about this plant and just how they may affect consumers.

This is no less than Toyota's 11th manufacturing facility in the United States, the second in the state, and is expected to start production sometime in 2021. "That's why states want to get them".

The new plant- in a state Trump won by 28 points in 2016- could be a political plus point to the Republican president, who has prompted automakers to construct plants in the United States and add jobs.

Sources for months have said the decision was between North Carolina and Alabama.

Alabama Gov. Kay Ivey and company executives held a joint news conference to announce that the facility is coming to the Huntsville area not far from the Tennessee line.

President Trump praised the decision and congratulated the state late yesterday.

Vanessa Coleman

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