Japanese based automobile manufacturers Toyota and Mazda have announced plans to open a $1.6 billion U.S. based assembly plant by 2021. The joint-venture has been described as a win-win for both companies, as well as for job growth potential in the U.S.
Image Source: Wikimedia
Thousands Of New Jobs
The site of the new plant has not yet been chosen, but wherever Toyota and Mazda decide to break ground, 4,000 new jobs are expected to be created as well. The U.S. based factory will be capable of producing 300,000 vehicles a year, primarily Corollas and possibly new Toyota-Mazda crossovers, which may include electric and self-driving vehicles.
Where Will The New Factory Be Opened?
In addition to improving their respective automobile offerings and technology through this joint-venture, Mazda and Toyota stand to benefit from cost savings by producing vehicles in the same country where they’ll be marketed and sold. Now the question many are asking is: Where will the new factory be opened?
Image Source: Construction Dive
States Vying For The Shortlist
There are nearly a dozen states vying to get on the shortlist. Indiana, Illinois, Alabama, Kentucky, Mississippi, Texas, North Carolina and South Carolina are among those jockeying for top choice. It’s not yet clear whether Toyota or Mazda will actively seek local and state offered tax incentives and other perks, though many government officials have been eager to point out property, resources, and other incentives to make their states look exceptionally attractive.
What are your thoughts on this joint venture that will bring more automotive manufacturing back to U.S. shores? Comment and tell us what you think.