Mazda to build $1.6B production facility in Alabama


The Hunstville plant will be the company's 11th manufacturing facility in the U.S. "Congratulations Alabama!" he wrote.

Expected to open in 2021, the plant breaks ground at a time where US auto sales are on a decline, meaning increased pressure to cut costs could jeopardize the automakers' plans to scale up USA production.

The state has offered some road and bridge improvements around the new plan, Alabama Commerce Secretary Greg Canfield said.

North Carolina has been beefing up its auto manufacturing for years but has not been able to land a major auto manufacturer. US new vehicle sales fell 2 percent in 2017, after hitting a record high in 2016, and are expected to fall further in 2018.

More of those positions will likely be generated because of Toyota and Mazda coming to Alabama. Alabama is the fifth largest producer of passenger vehicles in the U.S. Automobile manufacturing now employs about 57,000 Americans in Alabama.

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

Hyundai Motor Manufacturing Alabama spokesman Robert Burns said industrial maintenance is the plant's "weak spot" when it comes to finding and recruiting the right people. A Kia Motors Corp assembly plant operates near the Alabama border in Georgia. "I'm proud to see Toyota-Mazda investing in our state's workforce and continued economic development". Jointly-developed electric vehicles for the global market are also in the pipeline. Volkswagen ultimately built its plant in Chattanooga.

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Japanese automakers Toyota and Mazda are making an announcement about their new massive joint factory. The plant will be about 14 miles from Toyota's engine plant in Huntsville.

Toyota and Mazda are forming a capital alliance and splitting the cost for the plant equally.

"We have a manufacturing line and the students actually towards the end of the program, take the manufacturing line apart, put it back together and make sure it works", said Wilson.

He said the company has no additional announcements to make at this time.

Ivey announced this is a $1.6 billion investment in Huntsville and will add 4000 new jobs with average salaries of $50,000 annually. The company sold more than 407,000 RAV4s in the United States a year ago for the first time, passing the Camry, long Toyota's sales champion in the American market.

The US is now suffering from a falling auto industry sales. In addition to hiring by suppliers that provide parts for cars, auto plants stimulate home building, spending in restaurants and stores, and the creation of companies to provide services ranging from office cleaning to technology support. "We've never been this ready before with a site and a team together to ... go forward".