Toyota and Mazda to build a US car plant; expect incentives of $1bn

Japan-based car manufacturers Toyota and Mazda are planning to set up a manufacturing plant in the US.

The companies hope to receive an incentive of around $1bn from the state they choose to set up in, in terms of tax breaks and other support.

The factory will be worth $1.6bn and they have pledged it will create 4,000 jobs.

See also: 

China plans to end sale of traditional fuel cars 

Toyota launches GR range of sports cars

October edition of Business Review Asia 

So far, 12 states in the US have expressed their interest, creating huge competition to become the home of the Toyota-Mazda factory.

The companies will brief their boards within a few weeks about the potential locations and a decision is set to me made by the end of this year.

The factory is set to open in 2021, and is at present the only new car plant to be announced under the Trump administration. The President has called for more cars to be produced in the US: at present, Mazda imports all cars sold in the states.

It is thought this kind of opportunity will not come up again in the foreseeable future for an American state, since the production of traditional fuel vehicles is set to decrease in line with new environmental pledges and quotas.

According to Kristin Dziczek, director of industry research and the Center for Automotive Research in Ann Arbor, Michigan: “There haven’t been any big prizes like this in a while, and there isn’t expected to be any more for some time as overall auto production plateaus.”

This will prompt yet more competition which Toyota and Mazda are expected to use to their advantage in order to benefit as much as the expected $1bn if not more from their chosen state.

Share

Featured Articles

How India is bucking the global dealmaking downturn

M&A deal volume and value reach record highs in India in 2022, despite slower dealmaking globally – as scope activity and acquisitions in renewables surge

Create C-suite space for the Chief Transformation Officer

Responsible for driving growth and change, the Chief Transformation Officer is the latest addition to the C-suite as business undergoes major change

12 AI predictions for the enterprise in 2023 – Dataiku

With 2023 likely to be a huge year for AI, experts from AI platform provider Dataiku deliver their enterprise AI and ML trends for the year ahead

Welcome to the new breed of private members' clubs

Leadership & Strategy

Welcome to the New Age of the CISO

Leadership & Strategy

Making the UAE the world’s strongest digital fortress

Technology