Toyota officials said the key factor in choosing Alabama for the plant was its workforce, having experience with the Huntsville area for 15 years through an engine factory located in the Rocket City.
Workers there also redesigned another model in the Alabama lineup - the Odyssey minivan - which was the fourth new model redesign for the plant over the last three years, an unprecedented schedule for any Honda manufacturing facility in North America.
The production at the plant will be split equally between the two automakers. Previously, Toyota was criticized for considering a plan to build United States market Corollas in Mexico.
Multiple media outlets in North Carolina are reporting that the state offered $1.5 billion in incentives to attract the Toyota-Mazda plant.
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The new factory is slated to cost the automakers about $1.6 billion and employ up to 4,000 people when it opens in 2021.
"We look forward to watching the same success story unfold for Toyota-Mazda."In January 2017, the company announced that it will invest $10bn in the USA over the next five years. Starting in 2021, Toyota will be building its Corolla there, while Mazda will produce a new crossover, yet to be named.
For Mazda, the plant is expected to mark the start of its second century of operations and second half-century of sales in the country. The companies originally announced plans for a US plant in August when the two Japanese automakers signed a joint venture agreement, though the exact location was not known at that time.
"Mazda makes cars with a clear vision of how we want to inspire people, contribute to society and help preserve the beauty of the earth".
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"Alabama was more equipped for this plant as it already has others".
"Alabama's automotive manufacturers continued to make impressive strides in 2017, while also laying the groundwork for growth".
Huntsville Mayor Tommy Battle said the project will bring economic benefits to the region for generations.
Alabama is the fifth largest state in terms of auto production, with more than 1 million cars built there annually.
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