Toyota and Mazda have chosen, and their choice is Alabama. The two car manufacturers will together build a $1.6 billion factory in Huntsville, Alabama.
Despite a forecast of declining new car sales in the U.S. from analysts, the Toyota-Mazda plant, opening in 2021, will provide 4,000 jobs, have a manufacturing capacity of 300,000 cars a year, and utilize 2,500 acres of land to accommodate suppliers of major components such as seats and dashboards.
In addition to creating an auto-manufacturing hub in the Deep South, the Toyota-Mazda plant will help stimulate the regional economy by attracting other businesses including home building, restaurants, stores, and service companies ranging from office cleaning to technology support.
This post is based on the NY Times article,Toyota and Mazda Choose Alabama for $1.6 Billion Car Plant, by Neal E. Boudette, January 10, 2018.
1. What are the reasons for Toyota and Mazda to choose Huntsville, Alabama, as the location for their auto manufacturing plant?
Guidance: Reasons include: proximity of Toyota’s existing engine plant and Corolla plants, proximity to suppliers, creating an auto-manufacturing hub, stimulating the local economy, government incentives, and pressure to produce more vehicles in the U.S.
2. What are the economic and social impacts of the Toyota-Mazda plant?
Guidance: Impacts include job creation, the demand for supporting business and services, an increase in U.S.-made vehicles, reductions of imported vehicles, and stimulation of the regional economy.