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Alabama, North Carolina Finalists for New Toyota/Mazda Plant

Makers reportedly wanted $1B in incentives for new plant.

by on Nov.14, 2017

Toyota President Akio Toyota and his Mazda counterpart Kogai announce their alliance.

Though Detroit is known as the Motor City, that designation doesn’t appear to be enough to entice Toyota and Mazda to build its new jointly owned plant in Michigan.

The two finalists appear to be Alabama and North Carolina, according to multiple news reports.

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In August, the two Japanese carmakers confirmed they will also set up a new, $1.6 billion assembly plant in the United States that will create up to 4,000 new jobs. 

Toyota already operates a broad network of factories in the U.S., but Mazda hasn’t operated a plant there since exiting a long-running joint venture with Ford Motor Co. several years ago in southeastern Michigan.

(Toyota pairing up with Mazda on $1.6B auto plant in U.S. For the story, Click Here.)

Unsurprisingly, the price to land a new automotive plant is steep. The two companies reportedly want $1 billion in tax breaks and other incentives for the privilege of being the home of the newest transplant facility.

Even with the 10-digit incentive package demand, 15 states jumped at the chance to secure the new plant and its thousands of jobs, including the usual suspects: Michigan, Ohio, Indiana, Texas, Mississippi, Illinois and South Carolina, which are already home to several auto plans.

While Toyota has facilities in Texas and Alabama, only Alabama survived the cut. North Carolina, home to the tech triangle, does not currently host an automotive plant.

(Click Here for details about the new partnership between Toyota, Mazda and Denso.)

Toyota plans to build the Corolla at the new site while Mazda said it will produce crossovers that it “will newly introduce to the North American market.”

Expected to begin production in 2021, the plant likely pleased President Donald Trump, who pressured Japanese makers during his recent Asian tour to build more vehicles in the U.S. He’s often criticized Toyota for its plans to expand its Mexican operations, which it cancelled recently.

According to a formal announcement earlier this year by the two companies, their alliance will be far reaching and will see Toyota acquire a 5% stake in Mazda, the smaller maker taking a stake in its new partner, as well.

(Toyota set to build first hybrid model in U.S. Click Here for the story.)

Along with the new factory, they will expand an existing product partnership that has Mazda now supplying the bigger Japanese maker with a compact sedan for the North American market. Toyota will began producing a new “two-box van” for sale by Mazda in Japan.

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3 Responses to “Alabama, North Carolina Finalists for New Toyota/Mazda Plant”

  1. veh says:

    I see Right To Work is really bringing manufacturing into Michigan

    • Paul A. Eisenstein says:

      Right to Work was not really meant to bring manufacturing to Michigan.

  2. JAE says:

    What is the time period of the tax incentive, 10 years, 20 years? A billion is a long time to knock down.

    Also, is the $1B request due to the pressure Trump imposed, and does this set a new precedent? “Ok, you want me to build / set up shop here, give me HUGELY tax and other incentives…No? Mexico here I come…”

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