Toyota Motor Corp and Mazda Motor Corp have chosen Alabama as the site of their new $1.6 billion auto plant. This is a huge win for President Donald Trump, who had been lobbying manufacturers to focus on building their facilities in the United States or else face an increased tariff by continuing with foreign production.
Toyota already has a large engine plant in Alabama. The state also currently enjoys an established network of automatic suppliers. All in all, the plant will create 4,000 jobs and produce around 300,000 vehicles annually.
Toyota and Mazda expect to open the plant and start production as early as 2021. Though it's still a few years away, the controversial Republican president stands to benefit the most from this. Trump already won the state by as much as 28 points in 2016. Now that his plan of urging automakers to start building plants again in the United States to create local jobs has started to come to fruition, his popularity and that of his party could surge in the coming years.
The two leading automobile manufacturers first announced their capital alliance in August. They are currently committed to exploring joint development of technologies in an attempt to break through the EMV market.
As of the moment, Toyota has 10 plants scattered all over the United States. This includes plants in places such as West Virginia, Kentucky, Indiana, Alabama, Mississippi, and Texas.
Over the last few decades, Toyota and other fellow Asian automakers, as well as those hailing from Germany, have branched out to the United States. Their operations rival that of the Detroit Three automakers, both in terms of size and employment. Also, unlike the foreign-owned auto plants, they differ in that they have fewer unionized yet newer plants.