Louisiana offered a $500 million incentive package in its unsuccessful bid to land a $1.6 billion joint Toyota-Mazda automobile plant that chose Alabama instead.
"Alabama's automotive manufacturers continued to make impressive strides in 2017, while also laying the groundwork for growth". The new plant is expected to create up to 4,000 jobs, with production scheduled to begin by 2021.
"Alabama is truly honored to have been chosen for this project", Gov. Kay Ivey said at a press conference.
Those opportunities, however, will be as competitive as ever, as Tennessee and Alabama look to capitalize off the major investment mainly through existing and new suppliers for the new plant. "Welcome to sweet home Alabama".
The city of Huntsville will vote on additional incentives today, Underwood said. The state will also provide workforce training.
We asked our Facebook audience why they think Toyota and Mazda passed over North Carolina for an auto production plant. The site for the new plant is in Huntsville, located close to Toyota's Alabama plant. To entice manufacturers, Southern states have used a combination of lucrative incentive packages, low-priced labor and a pro-business labor environment since the United Auto Workers union is stronger in Northern states. The state assembled more than 1 million vehicles in 2016 at plants employing nearly 40,000 workers. Overall it has 36,000 USA employees, not including those at dealerships. The Korean automaker opened a plant near Montgomery in 2002 that makes the Elantra compact auto, Sonata mid-sized sedan, the Santa Fe crossover, and 4-cylinder engines.
Project New World, the code name given to the plant, has been the topic of much conversation among economic developers across the region as several states hoped to receive the $1.6 billion plant. Instead, the Tacoma pickup truck will be built south of the border. Corolla sales fell 14 percent for the year, to just less than 309,000, according to Autodata Corp. "The Toyota-Mazda announcement really puts an exclamation point on this". Mazda will produce crossovers alongside Toyota Corolla compact cars at the joint facility.
The sheer cost of the plant also makes a partnership logical, as it boosts cost-efficiency and economies of scale. Honda and Toyota followed by putting engine plants in the state.