Toyota Motor Company and Mazda Motor Corp. are expected to announce tomorrow plans to build a new assembly plant in Huntsville, Alabama. The two companies have been mulling several cities in recent months as options for their new plant.
Reports of the site selection process are coming from Reuters, citing unnamed sources familiar with the matter. The new factory is slated to cost the automakers about $1.6 billion and employ up to 4,000 people when it opens in 2021. A plant of this size is expected to be capable of producing up to 300,000 vehicles per year.
Alabama is not an entirely unexpected choice. Toyota already has an engine factory in the state, while Mercedes-Benz, Honda and Hyundai already have assembly plants in the state.
In recent weeks local media in Huntsville confirmed Toyota was considering the city’s “Huntsville Mega Site” as a leading contender to build the new factory. Toyota also recently invested another $106 million into its engine plant near Huntsville.
The news will likely be well-received by President Donald Trump, who has attacked automakers for not producing more of their vehicles in the United States. This marks the first all-new assembly plant to be announced by an automaker since Trump took office one year ago. Plans for the plant likely transcend the presidential election.
Toyota plans to produce the Corolla at its new assembly plant, while Mazda has said it plans to produce future crossover SUVs in Alabama.