Toyota and Mazda have selected Alabama as the site for their new joint-venture manufacturing plant.
The new plant will have the capacity of 300,000 vehicles annually, with production split evenly between two lines for each company to produce Mazda’s crossover that will be newly introduced to the North American market and the Toyota Corolla, the companies announced.
The joint venture represents a $1.6 billion investment that Mazda and Toyota plan to make with equal funding contributions. The site for the new plant is in Huntsville, located approximately 14 miles from Toyota’s Alabama plant. The facility is expected to create up to 4,000 jobs. Production is expected to begin by 2021.
Mazda said that the company will focus efforts on manufacturing and increasing sales in the country.
For Toyota, this joint-venture plant will be its 11th U.S. manufacturing facility in the U.S., in addition to the $10 billion dollar investment over the next 5 years that was announced in January 2017.
The State of Alabama is the 5th largest producer of cars and light trucks nationally with a strong automotive manufacturing presence including Toyota’s engine plant in Huntsville, where Toyota employs 1,400 team members. With more than 150 Tier 1 and 2 automotive suppliers in the state as well as automakers, there are approximately 57,000 automotive manufacturing jobs in Alabama.