Mazda, Toyota to build new joint-venture facility in Alabama

Mazda, Toyota joint-venture facility have capacity to produce 300,000 cars annually

Mazda and Toyota Motor Corporation have recently chosen Huntsville, Alabama as the new site of their new joint-venture manufacturing plant. The new plant is located approximately 14 miles from Toyota’s Alabama plant, and will have the capacity to build 300,000 vehicles annually.

The joint-venture represents a $1.6 billion investment that Mazda and Toyota plan to make with equal funding distributions, and the facility is expected to create up to 4,000 jobs, while the production of cars will start in 2021.

For Mazda, the plant comes on line in a significant year that will mark the start of the company’s second century of operation and second half-century of sales in the U.S. The automaker is enhancing its commitment to the U.S. market and will focus efforts on manufacturing and increasing sales in the country.

“Mazda makes cars with a clear vision of how we want to inspire people, contribute to society and help preserve the beauty of the earth. By making such cars here in Alabama, we hope that over time our plant will come to occupy a special place in the hearts of our employees and the local community. By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Alabama and Huntsville,” said Masamichi Kogai, president and CEO of Mazda Motor Corporation.

Meanwhile, Toyota’s joint venture plant will be its 11th US manufacturing facility and represents its continuous commitment in the US market. This will also be an addition to the $10 billion investment over the next five years, which was announced in 2017.

“Our investment to establish a new vehicle assembly plant with Mazda builds on the strong success we have enjoyed in Alabama where we produce engines for the North American market,” said Akio Toyoda, president of Toyota Motor Corporation. “Starting from 2021, I’m confident that we will run a highly competitive plant, by bringing together the expertise of Toyota and Mazda as well as the excellent Alabama workforce. We are committed to being another ‘best-in town’ company in the city of Huntsville and the state of Alabama, a new hometown for Toyota and Mazda.”

The State of Alabama is the fifth 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.

In the coming months, after obtaining approvals and authorization by antitrust agencies, the new joint venture will be established, and site preparations will begin with the start of production in 2021.