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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.

Trump declaration they're a security threat stuns Japanese automakers

TOKYO — Japan's automakers' lobby said on Tuesday it was dismayed by President Donald Trump's declaration that some imported vehicles and parts posed a threat to U.S. national security, as the industry braces for a possible rise in U.S. tariffs. Trump made the unprecedented designation of foreign vehicles on Friday but delayed for up to six months a decision on whether to impose tariffs to allow for more time for trade talks with Japan and the European Union. "We are dismayed to hear a message suggesting that our long-time contributions of investment and employment in the United States are not welcomed," said Akio Toyoda, chairman of the Japan Automobile Manufacturers Association. "As chairman, I am deeply saddened by this decision," Toyoda, president of Toyota, said in a statement. Trump has threatened to impose tariffs of up to 25% on imported cars made by foreign automakers, a move which automakers have argued would ramp up car prices, curb the global competitiveness of U.S.-made vehicles and limit investment in the country, the world's No. 2 auto market. The United States is a vital market for Toyota, Nissan, Honda and other Japanese car makers. Autos and components are among the Asian country's biggest export products. Most of Japan's major automakers operate plants in the United States. The Japan Automobile Manufacturers Association notes that its automakers build about 4 million vehicles a year in North America, or 75 percent of what it sells here. Many are built for export, helping lessen the U.S. trade deficit Trump is concerned about. Major automakers have announced a slew of investments in the United States since Trump took office in January 2017 and put pressure on the industry to create more U.S. jobs. For its part, Toyota has pledged to invest almost $13 billion in the United States between 2017 and 2021 to boost manufacturing capacity and jobs. This includes $1.6 billion for a vehicle assembly plant in Alabama jointly run with Mazda. Government/Legal Honda Mazda Mitsubishi Nissan Toyota Trump

Mazda MX-30 electric car production begins: Will it get the rotary range extender?

Mazda has officially started production of the electric MX-30. For the time being, the small electric car hasn’t been announced for the U.S. yet. Mazda hasnÂ’t declared otherwise, though, so we still have our hopes up. The first MX-30s are rolling off the line in Hiroshima, Japan. Europe will be one of the first places where these MX-30s end up. The car starts at GBP30,495 in the UK and ˆ33,990 in Germany. That's around $38,000. Certainly expensive, but the price would surely be different here, plus weÂ’d be eligible for the full $7,500 tax credit. Those lucky European customers will be met with an electric car that likes to do things a little differently than others. The modest 35.5 kWh battery pack is good for just 124 miles on EuropeÂ’s optimistic WLTP testing cycle. It would surely achieve a much lower number in the EPA test. Mazda has made it front-wheel drive, placing a single motor on the front axle thatÂ’s good for 143 horsepower. We expect to see the first ones hit the streets in Europe this fall, but thereÂ’s one thing that makes us hold out hope for an American MX-30: the potential for a rotary range extender. Mazda said as much in its 100-year celebration letter: “Later, the company developed a prototype Mazda2 EV with a small single-rotor engine used as a range extender. A similar system could find its way onto the Mazda MX-30, a brand new battery electric crossover SUV arriving at dealerships this year." Assuming Mazda goes through with a rotary range extender, we could see this car coming to the American market. That would up the range considerably and make it a much more viable option for many customers, even if they might not need the added range on a daily basis.  Related video: