Toyota, Mazda to build $1.6B plant in U.S.
Companies say 4,000 new jobs to be added through joint venture
Japanese automakers Toyota and Mazda confirmed plans Friday to build a $1.6 billion U.S. assembly plant with up to 4,000 new jobs as part of an extensive new alliance — and Toyota said it would make the Corolla sedan at the factory instead of in Mexico as previously intended.
The sweeping partnership includes investments in each other and collaboration on development of electric vehicles and self-driving car technology.
The deal marks a symbolically significant shift for Toyota after the company faced withering criticism from President Trump for its plans to locate Corolla production at a new $1 billion factory under construction in the state of Guanajuato in central Mexico.
Toyota said Friday that it would maintain its investment and hiring plans at the Mexican plant. But it will locate additional production of the Tacoma midsize pickup at the Mexican factory instead of the Corolla compact, which had been set to move there from an operation in Ontario, Canada.
The new U.S. factory is set to open by 2021. The companies have not picked a location, which is likely to trigger a bidding war between states seeking to spur economic development.
Trump swiftly heralded the move. “A great investment in American manufacturing!” he tweeted Friday morning.
Toyota spokesman Scott Vazin said the company would continue to make the Corolla at its Mississippi manufacturing plant, as well, with no changes planned there.
The new plant will also offer Mazda its first U.S. production since the company ended local manufacturing in recent years following its transition out of Ford ownership.
Mazda said it would make crossover models at the plant for sale in North America. Currently, all Mazda cars sold in the U.S. are made in other countries, according to Barclays.
The plans are likely to be trumpeted as a victory for Trump’s push to manufacture more locally sold vehicles in the U.S.