Alabama will be the site of an upcoming $1.6 billion Toyota Motor and Mazda Motor auto plant, a success for President Donald Trump who had prodded manufacturers to construct new U.S. centers and threatened tariffs on foreign production, sources stated on Tuesday.
The plant, which will use as much as 4,000 individuals and produce about 300,000 automobiles a year, will be found in Huntsville, Alabama, and is a benefit for the state, where Toyota has a large engine plant and an existing network of vehicle providers.
An official announcement by company and state officials is expected today in Montgomery, sources knowledgeable about the matter said.
The new plant– in a state Trump won by 28 points in 2016– could be a political plus point to the Republican president, who has prompted automakers to construct plants in the United States and add jobs. The companies stated they expect the plant to open in 2021.
Trump tweeted in March he desired “new plants to be built here for vehicles sold here.” The White House did not right away comment about Tuesday.
The statement also comes at a time of falling U.S. auto industry sales, so it could worsen overcapacity and add pressure to cut prices. U.S. new vehicle sales dropped 2 percent in 2017, after striking an all-time record high in 2016, and are anticipated to fall even more in 2018.
Information of an expected tax and reward plan for the investment were not yet known. It has been reported the companies looked for at least $1 billion in incentives.
A Toyota representative refused to comment, other than to say an announcement was expected soon. A Mazda spokesperson also refused to comment.
In recent months, the companies had narrowed their options down to sites in Alabama and North Carolina.