A couple of months ago, we talked about the mutually beneficial long term partnership inked by two Japanese giant automakers, Toyota and Mazda. Later on, they revealed that this will involve the construction of a manufacturing facility located in the United States. But it is only now that they revealed where this will be built.
The Toyota-Mazda manufacturing facility will be built in Huntsville, Alabama, which is located 150 miles (241 kilometers) away from Tuscaloosa, Alabama, the location of Mercedes-Benz’s plant.
To build this, both companies invested as much as $1.6 billion. The factory will employ about 4,000 people (a plan praised by the US president when he was in Tokyo), with a long-term goal of producing up to 300,000 cars annually.
Bob Carter of Toyota said that the future plant in Huntsville will have a size of 2,500 acres, and is going to be twice as big as what both automakers had initially planned, which was at 1,100 acres. He also said that they always want to have bigger plans for the future, which could mean more expansions within the plant. However, he did not confirm that.
As part of the deal, each company will acquire shares from the other. Toyota will get a 5.05 percent share in Mazda, while Mazda will get a 0.25 percent stake in Toyota. The plant is scheduled to be finished by 2021 if thing go as planned. It will be Toyota’s 11th manufacturing facility in the US, and the second one in Alabama.
Vehicles that will be built in this facility include the next generation Toyota Corolla, as well as the new Mazda crossover that will soon be available in the US market. If the rumours we have been hearing are true, then future electric vehicles may be assembled here as well for both Toyota and Mazda brands. Apart from that, we could also see a Mazda rotary range-extending engine that will be built in the same facility. But as I said, these will remain as rumours unless the automakers officially confirm this.
Akio Toyoda, Toyota President, said in his statement that Toyota, together with Mazda decided to invest in and establish a new vehicle assembly plant in Alabama as they have enjoyed producing engines here for their North American market.
Furthermore, he said that by the beginning of 2021, they will run a highly competitive plant, as they bring together the skills and expertise of both Japanese automakers, while working together with Alabama’s excellent workforce. He ends his statement stating that they are committed to being the best in town in the city of Huntsville, as well as the whole state.