SA loses out on new Toyota-Mazda factory, AP source says

2017 Toyota Corolla XSE Front Three Quarter In Motion 05

2017 Toyota Corolla XSE Front Three Quarter In Motion 05

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.

The Toyota-Mazda plant, which will build up to 300,000 vehicles a year and employ up to 4,000 people, is scheduled to open in 2021. Toyota plans to assemble the Corolla sedan there, while Mazda said it will use the factory to produce new crossover vehicles for the US market.

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Officials in Alabama are expected to hold a news conference Wednesday afternoon to announce the plant site. Alabama is the fifth-largest automobile producing state, which in addition to the Toyota engine plant, is home to Mercedes-Benz, Honda and Hyundai plants.

Workers at the plant are expected to build 300,000 vehicles per year and produce the Toyota Corolla compact auto starting in 2021. With the investment, both automakers hope to prove their good American corporate citizenship and appease the Trump administration's concerns about jobs moving overseas.

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