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Toyota, Mazda get an Alabama welcome for $1.6 billion plant

MONTGOMERY, Ala. — Toyota and Mazda confirmed Wednesday they will build a $1.6 billion joint venture assembly plant in Alabama that will employ up to 4,000 workers, a boost for President Donald Trump who wants automakers to expand U.S. production. Toyota President Akio Toyoda and Mazda President and Chief Executive Officer Masamichi Kogai joined Alabama Gov. Kay Ivey in Montgomery at an event to confirm the decision. "Welcome to sweet home Alabama," Ivey said to the two executives, after saying that the anticipated 4,000 workers at the plant to be built in Huntsville would earn an average of $50,000 a year. The plant will produce 300,000 vehicles a year and should open on a 2,500-acre former cotton field in 2021, about 14 miles from Toyota's engine plant in Huntsville. Toyota plans to build Corolla cars at the plant, while Mazda will build crossover SUVs. "Together, I am confident we will create yet another 'Built in America' success story," Toyoda said. Alabama will provide tax incentives. Officials said the state tax incentives were worth $370 million, but they did not disclose how much the local incentives were worth. Huntsville Mayor Tommy Battle said the plant will "provide jobs for decades to come for Huntsville and Alabama. It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation." Among U.S. states, Alabama is already the fifth largest producer of cars and light trucks. The state has more than 150 major auto suppliers and 57,000 automotive manufacturing jobs. Two decades ago, Alabama spent an estimated $250 million to woo Daimler AG's Mercedes-Benz to put an auto plant in Tuscaloosa, sparking the birth of auto production in the state. In September, Daimler said it would invest $1 billion to expand its Alabama Mercedes-Benz plant to start building electric sport-utility vehicles there from about 2020. Alabama is also home to assembly plants operated by Honda and Hyundai. A Kia assembly plant operates near the Alabama border in Georgia. Mazda and Toyota said they still need approvals and authorization by antitrust agencies for the new joint venture. They announced a capital alliance in August and plans to jointly develop technology for electric vehicles. Trump tweeted in March he wanted "new plants to be built here for cars sold here." Many automakers have announced expansions of facilities or new jobs but no other new U.S. auto plants have been announced. U.S.

100k Mazda6 sedans recalled over tire-monitoring systems

A tire pressure monitoring system (TPMS) is, as you might have guessed, designed to monitor the air pressure in the tires, and alert the driver if pressure drops. But a problem found in the Mazda6 could keep the system from doing its job. According to the recall notice issued by the National Highway Traffic Safety Administration, the TPMS in the Mazda6 might not recognize a loss in tire pressure if all the tires slowly deflate at the same time. Under-inflated tires, it goes without saying, could increase the risk of a crash. As a result, Mazda is recalling 99,711 examples of the 2014-2015 Mazda6 to have the system's software updated. RECALL Subject : Tire Pressure Monitoring System/FMVSS 138 Report Receipt Date: OCT 27, 2014 NHTSA Campaign Number: 14V675000 Component(s): TIRES Potential Number of Units Affected: 99,711 Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2014-2015 Mazda6 vehicles manufactured October 25, 2012, to October 10, 2014. If the pressures of four of the tires on an affected vehicle gradually drop at the same time, the tire pressure monitoring system (TPMS) may not warn the driver of the drop in pressure. As such, these vehicles fail to comply with the requirements of the Federal Motor Vehicle Safety Standard (FMVSS) No. 138, "Tire Pressure Monitoring System." CONSEQUENCE: A vehicle that is driven with under inflated tires may experience a sudden tire failure, increasing the risk of a crash. REMEDY: Mazda will notify owners, and dealers will update the TPMS software, free of charge. The recall is expected to begin on December 10, 2014. Owners may contact Mazda customer service at 1-800-222-5500. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Japanese automakers ramping production for renewed American sales

The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable.
Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News, Nissan, Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce.
Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant. Production of the Outlander Sport is currently at 50,000, which Mitsubishi wants to raise to 70,000.