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    Thread: Alabama wins new Mazda/Toyota assembly plant

    1. Member Unilateral Phase Detractor's Avatar
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      01-10-2018 09:59 AM #1
      Toyota, Mazda select Alabama for $1.6 billion plant
      January 9, 2018 @ 6:09 pm
      David Shepardson and Bernie Woodall
      Reuters

      UPDATED: 1/9/18 9:13 pm ET - adds details
      Alabama will be the site of a new $1.6 billion Toyota Motor Corp. and Mazda Motor Corp. auto plant, a victory for President Donald Trump who has prodded manufacturers to build new U.S. factories and threatened tariffs on foreign production, sources said on Tuesday.

      The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in the Huntsville, Ala., region and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers.

      A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said.

      The new plant -- in a state Trump won by 28 points in 2016 -- could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs.

      Trump tweeted in March he wanted "new plants to be built here for cars sold here."

      The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018.

      Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives.

      A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment.

      In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina.

      Local media last month said the leading site under consideration was in northern Alabama's Limestone County, near Toyota's large engine plant in Huntsville. In September Toyota announced a $106 million technology upgrade for the Huntsville plant.

      A Chamber of Commerce of Huntsville website for the "Huntsville Mega Site" touts the fact it has been "certified as development-ready." The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant.

      The new factory will be located in Limestone County north of Birmingham, Bloomberg also reported, citing a source. The Birmingham Business Journal reported the selection earlier Tuesday.

      North America accounted for about a quarter of Toyota’s total vehicle sales in 2017, and about 36 percent of revenue.

      Mazda, which gets a third of its revenue from North America, currently imports all of the models it sells in the U.S. It plans to produce crossovers alongside Toyota Corolla compact cars at the joint plant.

      A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico.

      "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump posted on Twitter in early 2017.

      Toyota and Mazda announced plans for a new plant in August. Toyota said it would shift production of Corollas from Canada to the new venture rather than in Guanajuato, and would build Tacoma pickups in Mexico instead. Mazda plans to build new crossover SUVs at the plant.

      Trump praised the joint venture announcement, saying in August on Twitter: "Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!"

      In October, Toyota said it would scale back investment in a planned plant in Mexico by 30 percent to $700 million and cut planned annual capacity in half to 100,000 vehicles as it shuffles its production plans to meet market demands.

      Toyota has 10 U.S. plants in eight states in an arc running from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas.

      Toyota and Mazda announced a capital alliance in August and are exploring joint development of technologies for the basic structure of competitive electric vehicles.

      Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit 3 automakers in size and employment, but with newer, and fewer unionized, plants.

      States covet auto assembly plants because they typically pay above-average wages and spin off jobs at suppliers and service companies. Southern U.S. states have the advantage of good transportation infrastructure, business-friendly regulators and generally anti-union politicians.

      The Alabama Department of Commerce shows 150 of the large automotive suppliers operate in the state, providing the logistical strength that Kristin Dziczek, a researcher at the Center for Automotive Research in Michigan, said helped land the plant.

      Dziczek said that Alabama in 2017 was tied for fifth among U.S. states in auto production, at 9 percent with Tennessee. It was behind Michigan at 19 percent; Indiana at 12 percent, Kentucky at 11 percent; and Ohio at 10 percent.

      "The impact of an auto assembly plant extends beyond its immediate economic impact, and that's why states offer robust incentives," said Dennis Cuneo, a site-selection consultant and former Toyota executive. "It creates a halo effect that in turn helps attract other projects."

      Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa two decades ago.

      http://www.autonews.com/article/2018...-billion-plant

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    3. Member GruuvenNorth's Avatar
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      01-10-2018 10:02 AM #2
      2 Japanese companies providing jobs for Americans, while the American companies decide to build off shore.

      nice.
      Easy like Sunday Morning.

    4. 01-10-2018 10:30 AM #3
      Based Japan.

    5. Member Uber Wagon's Avatar
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      01-10-2018 10:41 AM #4
      First Roy Moore loses, and now this. Congrats Alabama, I'm rooting for you.
      Last edited by Uber Wagon; 01-10-2018 at 10:44 AM.
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    6. Member Unilateral Phase Detractor's Avatar
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      01-10-2018 10:54 AM #5
      Quote Originally Posted by Uber Wagon View Post
      First Roy Moore loses, and now this. Congrats Alabama, I'm rooting for you.
      Just speculation, but if pedophile guy would have won, they might have gone with NC instead.

    7. Member Uber Wagon's Avatar
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      01-10-2018 11:01 AM #6
      Quote Originally Posted by Unilateral Phase Detractor View Post
      Just speculation, but if pedophile guy would have won, they might have gone with NC instead.
      Probably Texas. Legal age of consent here is 17.
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    8. Geriatric Member Air and water do mix's Avatar
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      01-10-2018 02:06 PM #7
      Quote Originally Posted by Uber Wagon View Post
      First Roy Moore loses, and now this. Congrats Alabama, I'm rooting for you.
      I think that's more about what a flawed candidate Roy Moore was than it was about Alabama. There's certainly no shortage of flawed candidates for most elections.
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    9. Senior Member bzcat's Avatar
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      01-10-2018 03:01 PM #8
      Quote Originally Posted by GruuvenNorth View Post
      2 Japanese companies providing jobs for Americans, while the American companies decide to build off shore.

      nice.
      I'm sure if Alabama gave US car companies the kind of tax subsidy it gave to foreign car companies, Ford and GM will build there too.

    10. Member Unilateral Phase Detractor's Avatar
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      01-10-2018 03:29 PM #9
      Quote Originally Posted by bzcat View Post
      I'm sure if Alabama gave US car companies the kind of tax subsidy it gave to foreign car companies, Ford and GM will build there too.
      After VW passed over Alabama in 2008 in favor of Tennessee, AL vowed to never be outbid for another assembly plant. Can't imagine how much it will total, but I'm sure it will be at least a billion.

    11. Geriatric Member Air and water do mix's Avatar
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      01-10-2018 04:25 PM #10
      Quote Originally Posted by bzcat View Post
      I'm sure if Alabama gave US car companies the kind of tax subsidy it gave to foreign car companies, Ford and GM will build there too.
      I don't think that they can because of UAW agreements. I could be wrong on that one, but I don't think so. Can others confirm/deny?
      Quote Originally Posted by Boyz in da Park
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    12. Member Uber Wagon's Avatar
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      01-10-2018 04:34 PM #11
      Quote Originally Posted by Unilateral Phase Detractor View Post
      After VW passed over Alabama in 2008 in favor of Tennessee, AL vowed to never be outbid for another assembly plant. Can't imagine how much it will total, but I'm sure it will be at least a billion.
      Alabama al has following plants:

      • Honda Manufacturing of Alabama
      • Hyundai Motor Manufacturing Alabama
      • Mercedes-Benz U.S. International
      • Toyota Motor Manufacturing Alabama

      Don't be greedy Alabama. Let your other gulf states friends have some fun too (like Mississippi). Them children needs shoes!
      Last edited by Uber Wagon; 01-10-2018 at 04:39 PM.
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    13. Senior Member bzcat's Avatar
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      01-10-2018 05:46 PM #12
      Quote Originally Posted by Air and water do mix View Post
      I don't think that they can because of UAW agreements. I could be wrong on that one, but I don't think so. Can others confirm/deny?
      They can if they want to but they choose not to assist US based car companies because of UAW. But that's exactly my point.

      The tax subsidies these southern states dole out primarily a concerted political and ideologically based policy to weaken unionization in the private sectors in the US, not purely to drive local economic development. South Carolina gave Boeing billions on the condition that it break union contract to establish a new 787 final assembly plant. And Tennessee threatened to cancel VW's tax subsidy when it agreed to let workers form councils like it does in every plant. The last time any southern state seriously courted Ford or GM was the Saturn plant in Tennessee and that was when it was a strong Democratic (well, Dixiecrat anyway) state with no political aversion to unionized blue collar workers.

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      01-10-2018 05:49 PM #13
      I was hoping Toyota would make more cars in Japan due to the improved exchange rate. Oh well.
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      01-10-2018 06:01 PM #14
      What is happening to the existing Corolla plant in Mississippi (built in 2011)?

      https://en.wikipedia.org/wiki/Toyota...ng_Mississippi
      Improving the signal-to-noise ratio

    16. Senior Sloth SWeetie's Avatar
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      01-10-2018 06:06 PM #15
      Because Alabama. Nick Saban kills kittens also.

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      01-10-2018 06:07 PM #16
      Quote Originally Posted by adrew View Post
      What is happening to the existing Corolla plant in Mississippi (built in 2011)?

      https://en.wikipedia.org/wiki/Toyota...ng_Mississippi
      From some quick online reading it sounds like Mississippi can't handle Corolla demand alone. The plan is to build some small cars and future crossovers in Alabama.

      "We do have supply lines in the U.S. that are pretty extensive, particularly for the Corolla," said Scott Vazin, a Toyota spokesman. "We hope these supply lines can be utilized for this new entity, because there are clearly some efficiencies in it."
      source

    18. Member robr2's Avatar
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      01-10-2018 09:09 PM #17
      Quote Originally Posted by Unilateral Phase Detractor View Post
      After VW passed over Alabama in 2008 in favor of Tennessee, AL vowed to never be outbid for another assembly plant. Can't imagine how much it will total, but I'm sure it will be at least a billion.
      What I heard today was $350 million to start including wage reimbursements.

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      01-10-2018 09:14 PM #18
      Yay for Alabama.

      I know it makes no sense economically, but it would be nice to see some jobs being created in Oregon. At least we have Intel.
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      01-10-2018 09:28 PM #19
      Quote Originally Posted by adrew View Post
      What is happening to the existing Corolla plant in Mississippi (built in 2011)?

      https://en.wikipedia.org/wiki/Toyota...ng_Mississippi
      Nothing, TMMC in Canada will stopping building Corollas there so they can build more RAV4s (and Lexus RXs)...now the US will have another Corolla plant lulz.

    21. Member what's Avatar
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      01-10-2018 09:52 PM #20
      That makes me less likely to purchase whatever vehicles are built there.

      I do my best not to support backwards land where nearly 50% of the population thinks a pedo is a better choice than someone who fought for civil rights because their imaginary friend says so.
      how come a transvestite donkey witch is next to you and why is it wearing a dress?

      Say 'what' again. Say 'what' again, I dare you, I double dare you mother****er, say what one more goddamn time!

    22. Member adrew's Avatar
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      01-10-2018 10:50 PM #21
      Quote Originally Posted by what View Post
      That makes me less likely to purchase whatever vehicles are built there.

      I do my best not to support backwards land where nearly 50% of the population thinks a pedo is a better choice than someone who fought for civil rights
      The paint is kind of meh on our Mississippi-built Corolla but aside from that it is built pretty well.

      Kind of like Texas, the populated areas of AL were all strongly for the candidate in the latter category, especially the part of the state with US 80 (Demopolis/Selma/Montgomery/Tuskegee). I found the (unofficial) FB page for the MS Corolla plant awhile back and I am going to make the assumption that most of its employees swing that way (...and Huntsville, where the new plant will be, went for Jones).

      And after flipping through it, I found a post with info about scheduling a plant tour - might have to do that the next time we head through that area.
      https://www.facebook.com/pages/Toyot...08973585919207
      Improving the signal-to-noise ratio

    23. Geriatric Member Air and water do mix's Avatar
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      01-10-2018 10:57 PM #22
      Quote Originally Posted by what View Post
      That makes me less likely to purchase whatever vehicles are built there.

      I do my best not to support backwards land where nearly 50% of the population thinks a pedo is a better choice than someone who fought for civil rights because their imaginary friend says so.


      Thoughtless divisiveness is one of our country’s biggest problems.
      Quote Originally Posted by Boyz in da Park
      Proletariat, Bourgeoise - Everybody smellin' my potpourri...

    24. Member what's Avatar
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      01-10-2018 11:19 PM #23
      Quote Originally Posted by Air and water do mix View Post


      Thoughtless divisiveness is one of our country’s biggest problems.
      Plenty of thought went into it. Alabama represents the land of lowest common denominator. I do not support race to the bottom jurisdictions if I can avoid it. Alabama, even if there are good people there, is such a place. It also doesn't help that half the population would rather vote for someone on a registry than registered as a (D).
      how come a transvestite donkey witch is next to you and why is it wearing a dress?

      Say 'what' again. Say 'what' again, I dare you, I double dare you mother****er, say what one more goddamn time!

    25. Geriatric Member Air and water do mix's Avatar
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      01-10-2018 11:25 PM #24
      Quote Originally Posted by Boyz in da Park
      Proletariat, Bourgeoise - Everybody smellin' my potpourri...

    26. Member what's Avatar
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      01-10-2018 11:30 PM #25
      Quote Originally Posted by Air and water do mix View Post
      Don't worry, I feel the same way about Indiana. How'd Heir Vice President's RFRA work out for ya? Yay American Taliban!
      how come a transvestite donkey witch is next to you and why is it wearing a dress?

      Say 'what' again. Say 'what' again, I dare you, I double dare you mother****er, say what one more goddamn time!

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