The Wall Street Journal reported on Tuesday that Toyota Motor Corp. and Mazda Motor Corp. are forming a capital alliance and splitting the cost for a new $1.6 billion assembly plant in Huntsville, which is Alabama’s third most populous city.
They picked the state of Alabama over ten competing states. Alabama’s fiscally conservative policies, pioneered by the Republican-controlled state legislature and GOP Governor Kay Ivey, likely helped.
President Donald Trump can also claim credit because a year ago he criticized Toyota publicly for building a new plant in Mexico, leading the Japanese company to announced plans to spend $10 billion within the United States over the next five years.
Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax.
— Donald J. Trump (@realDonaldTrump) January 5, 2017
Toyota and Mazda first announced plans for a new American plant in August, which will create 4,000 jobs and manufacture up to 300,000 vehicles a year by 2021. This facility would be Toyota’s fifth plant in America, with the other four being located in the red states of Indiana, Kentucky, Mississippi, and Texas.
Huntsville, Alabama is already home to Toyota’s largest engine plant in the world. It produced more than 700,000 four-cylinder, V-6, and V-8 engines in 2016.