Incentives for Toyota-Mazda plant in Alabama

Lester Mason
January 13, 2018

Alabama offered an incentive package worth over $379 million to lure the plant. There also was reimbursement for eligible capital costs, state sales tax abatement, a non-educational property tax abatement and promise that the state employment agency will build and operate a training center.

"If there ever was a slam dunk deal, this is a great one", Battle said. "We are committed to being another "best-in town" company in the city of Huntsville and the state of Alabama, a new hometown for Toyota and Mazda".

Multiple states had competed for the project by the Japanese auto giants.

"The partnership between Mazda and Toyota will expand innovative automotive manufacturing in Alabama", Governor Ivey said. "By making this plant a vibrant part of that community, we hope to work, learn and grow together with the people of Alabama and Huntsville", Kogai said.

"Not only that, it's really hard to measure the positive impact that having companies create career opportunities like this and how that transforms families", Canfield said.


Alabama had already tied up with Tennessee as the fifth-largest producer of vehicles in the United States previous year, according to the Center for Automotive Research, an industry think tank in Ann Arbor, Michigan. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation".

Japanese automakers Toyota and Mazda have announced plans to build a $1.6 billion joint-venture auto plant in Huntsville, Alabama. Companies are coming back to the U.S.in a very big way. In the end, the two automakers chose a site near an existing Toyota engine factory in Alabama. To entice manufacturers, Southern states have used a combination of lucrative incentive packages, low-priced labor and a pro-business labor environment since the United Auto Workers union is stronger in Northern states. And the plant will produce $951 million in net revenue to the state after the incentives are taken into account.

The State of Alabama is the fifth largest producer of cars and light trucks nationally with a strong automotive manufacturing presence including Toyota's engine plant in Huntsville, where Toyota employs 1,400 team members.

"Being here today feels like a homecoming for Toyota and me personally", said Toyota President Akio Toyoda at a ceremony to announce the new plant.

Other reports by Iphone Fresh

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