The two Japanese automakers have decided to secure a major collaboration on American soil – part of last year’s “long-term partnership,” announcing the project of an all-new factory.
The new U.S.-based manufacturing facility will be constructed in Huntsville, Alabama – which coincidentally is just 150 miles (241 kilometers) from Mercedes-Benz’s Tuscaloosa, Alabama plant. It’s a massive project – investments amount to $1.6 billion, with plans to create no less than up to 4,000 new jobs, at an installed annual capacity of up to 300,000 vehicles. The agreement also includes a major transaction – Toyota is going to take up a 5.05-percent stake in Mazda, the latter also getting something in return, albeit a lot less, a 0.25-percent stake of Toyota.
This is no less than Toyota’s 11th manufacturing facility in the United States, the second in the state, and is expected to start production sometime in 2021. Production models have already been inscribed – the upcoming new generation Corolla, a new Mazda crossover set to go on sale in the United States later on and according to reports it may also be technologized for the production of upcoming EV models from both makes. “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,” explained Toyota President Akio Toyoda.