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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.

Weekly Recap: Diesel scandal continues to fuel VW's woes

Volkswagen's woes continued this week when it was delisted from the Dow Jones Sustainability Index and stripped of awards. Senators are also lining up to advocate for criminal and civil action against the automaker, and its consumer reputation is in tatters. Put simply, it's been another rough period for VW. Despite this, the company eked out a sales gain of less than one percent in September, though that was well behind the overall market's performance. Sister brand Audi, which sells a diesel A3, was less affected, posting a 16-percent gain in September. Revelations that Volkswagen rigged millions of diesel-powered cars around the world didn't surface until September 18, so the full sales impact of the ongoing scandal won't likely be felt until October. Meanwhile, VW's image continues to take a beating, and an AutoPacific survey found only one in 14 vehicle owners have a positive opinion of the company. Before the scandal broke, three-quarters of respondents had a positive view of VW. The survey also found 64 percent don't trust Volkswagen, though the same number believe other companies are or may also be using cheating devices to pass emissions tests. "The reputation of diesels has been severely damaged, at least for the short term," Ed Kim, AutoPacific's vice president of industry analysis, said in a statement. Despite the lingering malaise, experts believe VW will recover, just as Toyota and General Motors eventually emerged from their own high-profile controversies. "Consumers have proven through numerous recalls that they are resilient and quickly return to their buying habits," Kim said. OTHER NEWS & NOTES Mazda to reveal sports car concept in Tokyo Mazda will bring a curvy sports car concept to the Tokyo Motor Show in October. The automaker is being especially coy with the details, only releasing the dark teaser shot that you see to the right and a cryptic statement that suggests the concept "condense[s] Mazda's entire history of sports-car development into a single model." Immediately, speculation abounded this is an RX-7 and RX-8 successor, though Mazda didn't specify what engine the concept will have. Reportedly, the company is still working on rotary engines. Mazda will have a Cosmo Sport 110S on its stand in Tokyo, which pioneered rotary technology in 1967. Read into that what you will. The Rock pitches Ford service Dwayne Johnson, also known as The Rock, is the new frontman for Ford service.

Mazda explains the thinking behind the MX-30's small battery pack

Mazda's first production-bound electric car, the MX-30, relies on a 35.5-kilowatt-hour lithium-ion battery pack for power. That's relatively small, but the Japanese firm argued it's exactly what the model needs to let motorists drive electric while keeping their environmental footprint in check. Christian Schultze, head of Mazda's European research and development center, told Automotive News Europe the MX-30's battery is responsibly-sized. He explained engineers took a variety of factors into account when debating kilowatt-hours, including how much energy is required to build the pack, how much electricity is needed for a full charge, and the environmental impact of replacing the battery, which Mazda expects could be necessary after the MX-30 has covered about 100,000 miles. Sticking with a smaller pack yields total CO2 emissions on par with a turbodiesel-powered Mazda3. In contrast, using a 95-kilowatt-hour battery (which is close to what Tesla's bigger models use) would have increased the MX-30's life-long CO2 output considerably by requiring more energy to build, and needing far more electricity to achieve a 100% charge. We're not quite sure that math or battery longevity assumption hold up under scrutiny. In any case, small is the direction Mazda decided to go. The trade-off is that the MX-30 (pictured) is expected to drive for about 124 miles between charges, and that figure was achieved on the hugely optimistic WLTP testing cycle; real-world mileage will be lower. That's hardly a jaw-dropping number, and the crossover doesn't qualify for the coveted long-range label, but Schultze told British magazine Autocar it's more than enough to cover the daily transportation requirements of the average European motorist, which stands at a total of 31 miles. That's significant, because Europe will be one of the MX-30's key markets. Deliveries are scheduled to begin in early 2021. Mazda hasn't announced whether it will sell the MX-30 in the United States, or if it will wait until it has a longer-range electric car to enter the segment.