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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 expands scope of vehicles affected by Takata airbag recall to 330k

Earlier this week a Reuters report indicated that Mazda was considering a nationwide expansion of its recall for vehicles equipped with Takata airbag inflators. The company has now confirmed said expansion, with the vehicle count jumping from 86,770 to 330,000 affected in the US. As before, the affected vehicles are Mazda6 and RX-8 cars from the 2004 to 2008 model years. Mazda reports that Takata has tested a "large number of inflators removed from Mazda vehicles" and not found any to be "non-compliant" as of yet. With that said, the company also reports in its statement that one 2005 Mazda6, located in Florida, has been identified as having had an "abnormal" deployment of the driver's side airbag. For what it's worth, though the company's statement references the Takata inflator issue as a proper recall, it is calling its own program of notification a "Safety Improvement Campaign" for the moment. Find the full, if brief, Mazda press release in the form below. UPDATED MAZDA STATEMENT REGARDING TAKATA AIRBAGS Dec 11, 2014 WASHINGTON, DC (December 11, 2014) – In addition to the actions announced on December 4, 2014, as discussed in a separate document, Mazda today announced the following steps in the Takata recall: Mazda will institute a nationwide Safety Improvement Campaign of 2004-2008 model-year Mazda6 and RX-8 models equipped with certain Takata airbag inflators. The nationwide Safety Improvement Campaign will cover the driver's-side airbag inflator, as Mazda has not made a safety defect determination at this time. This action will support us to gather additional parts for examination and to promote customer satisfaction and safety. There are approximately 330,000 vehicles included in this Safety Improvement Campaign in the United States So far, Takata has tested a large number of inflators removed from Mazda vehicles, and NONE have been found to be non-compliant at this time One vehicle – a 2005 Mazda6 located in Florida – has been identified as having experienced an abnormal driver's-side airbag deployment. Mazda has worked closely with NHTSA on this situation Mazda will participate in the independent, industry-wide joint testing program for Takata airbag inflators For history, on December 4, 2014, Mazda announced: It would expand the area of the high-temperature, high-humidity region recall to include the Gulf Coast states.

Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.