Toyota had originally planned to build a new Corolla plant in Mexico, but after the joint venture plans were announced in August, Toyota changed course and chose to build the Tacoma pickup at the plant in Mexico and the new Corolla at the new US plant.
When Toyota and Mazda announced their joint venture in August past year, Trump took to Twitter to praise the Japanese automakers for their American-centric decision.
The plant will be located near Huntsville.
Reports have indicated that Alabama and North Carolina were the two finalists for the Toyota-Mazda plant.
But during the summer, Toyota President Akio Toyoda denied that Trump's views influenced his decision.
Mazda has a plant in Mexico, a country that also hosts the manufacturing bases of related parts makers, which facilitates parts supplies to the southern U.S. The plan calls for rolling out 300,000 passenger cars a year to the USA market.
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Matt Bevin reportedly said that he would fight to bring a new $1.6 billion automaker plant to Kentucky, but now the joint venture between Toyota and Mazda is expected to go to Alabama. By making such cars here in Alabama, we hope that over time our plant will come to occupy a special place in the hearts of our employees and the local community.
The new plant will have the capacity to build 300,000 vehicles annually, with production split evenly between two lines for each company to produce Mazda's crossover model that will be newly introduced to the North American market and the Toyota Corolla. The person did not want to be identified because the decision hasn't been made public.
"With this announcement, our world changes overnight", said Battle.
To lure the plant, the state offered an incentive package of $370 million in tax abatements and investment rebates, Alabama Commerce Secretary Greg Canfield said.
"We are committed to becoming a "best-in-town company" in the city of Huntsville and the state of Alabama, a new hometown for Toyota and Mazda".
Most foreign automakers have at least some production capability in the United States, most of which is dedicated to trucks and SUVs. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation".
Toyota already has a presence in the state thanks to an engine manufacturing facility. It produces most of the cars and trucks it sells in the U.S.at those USA plants and exports some of those cars to other markets.
"We expect the new facility in Huntsville to act as a magnet for substantial new industry investment and job-creation that lifts communities and families across the state", he added.