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Toyota, Mazda $1.6 billion plant goes to Alabama, sources say

Alabama will be the site of a new $1.6 billion Toyota and Mazda auto plant, a victory for President Donald Trump who had prodded manufacturers to build new U.S. facilities and threatened tariffs on foreign production, sources said on Tuesday. The plant, which will employ up to 4,000 people and produce about 300,000 vehicles a year, will be located in Huntsville, Ala., and is a boon for the state, where Toyota has a large engine plant and an existing network of automotive suppliers. A formal announcement by company and state officials is expected on Wednesday in Montgomery, sources briefed on the matter said. The new plant — in a state Trump won by 28 points in 2016 — could be a political boost to the Republican president, who has urged automakers to build plants in the United States and add jobs. The companies said they expect the plant to open in 2021. Trump tweeted in March he wanted "new plants to be built here for cars sold here." The White House did not immediately comment on Tuesday. The announcement also comes at a time of declining U.S. auto industry sales, so it could exacerbate overcapacity and add pressure to cut prices. U.S. new vehicle sales fell 2 percent in 2017, after hitting an all-time record high in 2016, and are expected to fall further in 2018. Details of an anticipated tax and incentive package for the investment were not yet known. It has been reported the companies sought at least $1 billion in incentives. A Toyota spokesman declined to comment, except to say an announcement was expected soon. A Mazda spokeswoman also declined to comment. In recent months, the companies had narrowed their choices down to sites in Alabama and North Carolina. Local media last month said the leading site under consideration was in northern Alabama's Limestone County, near Toyota's large engine plant in Huntsville. In September, Toyota announced a $106 million technology upgrade for the Huntsville plant. A Chamber of Commerce of Huntsville website for the "Huntsville Mega Site" touts the fact it has been "certified as development-ready." The commerce chamber, local and state officials declined to comment on Tuesday on plans for the plant. A year ago, President-elect Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the U.S. market in Mexico. "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.

Mazda CEO says rotary not viable, so don't look for a new one

We have some very sad news to report, rotor-heads fans: Don't expect a new rotary-powered vehicle anytime soon. This comes straight from Masamichi Kogai, the CEO of Mazda, which is the only company to ever market a commercially successful rotary-powered automobile in the world. The issue, as it has pretty much always been, is environmental.
While the Wankel rotary engine does indeed make a lot of power in a small, lightweight package, it does so while burning lots of fuel and emitting lots of noxious gases into the atmosphere, at least when running on gasoline. And that means the rotary engine will likely only ever be able to power niche vehicles. And that, in turn, means that it is very difficult to turn a profit on vehicles with rotary engines, particularly for a small automaker like Mazda.
"It has to be a viable commercial proposition. If we are going to adopt it, it has to be a product that can generate at least sales of 100,000 units a year. We have to be able to achieve a profit," said Kogai in an interview with Automotive News. Mazda sold 56,203 RX-7 models in the United States (the automaker's biggest market) in 1986. Sales of the RX-8 peaked in 2004, its first full year on the market, with just 23,690 units.

Mazda6 diesel is coming, too, Mazda promises (again)

As we noted our piece earlier today about the CX-5 diesel, we've been waiting for Mazda to bring its Skyactiv-D engines to market for years. Tripped up by an emissions certification nightmare that caused delays and resulted in lackluster power and fuel economy numbers, they're late to the party. In the CX-5 diesel, it's also a questionable proposition at almost $4,000 more than the much more powerful CX-5 Turbo. But today, Mazda's U.S. president confirmed to Autoblog that the diesel engine would make its way into the 6. Like the CX-5, it'll only be offered with all-wheel drive and only on the top Signature trim level. Unlike the CX-5 diesel, which goes on sale in July, we don't know when the Skyactiv-D-powered 6 will go on sale. But it seems like later this year is a good bet. How much longer can Mazda wait, really, once the CX-5 diesel is on sale? The diesel Mazda6 will use the same 2.2-liter engine as the CX-5. It'll probably offer the same power figures – 168 horsepower at 4,000 rpm and 290 pound-feet of torque from a low 2,000 rpm, with a 5,500-rpm redline. The fuel economy bonus for choosing a diesel over the turbocharged gas engine should roughly parallel the difference in the CX-5: about 5 mpg in the city and 3 mph on the highway. That said, we don't know the 6's EPA fuel economy numbers yet. We expect the price premium to roughly parallel the CX-5 as well, so the diesel will likely be several thousand dollars more than the gas turbo engine in the same Signature trim. These are educated guesses, of course, and when we have firmer numbers or solid estimates from Mazda we'll let you know.