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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.

Toyota raises Japanese base wages for first time since 2008

Toyota is on track for record profits, and in return, its Japanese workers are receiving their first increase in base wages since 2008, plus higher pay based on seniority and a larger bonus for 2014. The Japanese automaker predicts the average laborer will net a 2.9 percent income gain.
The average Toyota employee will earn 2,700 yen ($26.28) more each month, a 0.8 percent increase from last year. Workers will also receive about 7,300 yen ($71.09) more monthly based on seniority and promotions. Finally, the company's union pushed through a median bonus of 2.44 million yen ($23,768) for 2014, the highest in 6 years.
The pay boost comes as Toyota forecasts a record 1.9-trillion yen ($18.5 billion) profit for the fiscal year ending on March 31, according to Bloomberg. It has been helped by the Japanese government's efforts to weaken the yen on international markets and expand inflation. Prime Minister Shinzo Abe has been asking businesses to increase compensation to end years of deflation and offset upcoming higher sales taxes. Honda and Nissan have also raised their wages there in recent months.

Toyota develops new pre-collision system with steering assist

A number of automakers are working on developing fully autonomous cars, but it looks like the groundwork for such technologies will likely show up first as semi-autonomous systems for both safety and convenience. Following recent announcements from Nissan and Ford in this area, Toyota has now released information for some of its advanced semi-autonomous technologies that could be offered in production cars over the next few years.
On the safety front, Toyota's new pre-collision system with pedestrian-avoidance steering assist is aimed at protecting the folks who aren't in the car. This system combines visual and audible alerts with automatic brake assist and automatic steering. If warnings don't get the driver to slow down, the brake assist kicks in if a collision is very likely, but if that is still not able to avoid the impending collision (and if there is enough room to do so), the car can automatically steer itself around the pedestrian. This sounds most beneficial for last-second dangers such as a person accidently stepping out into the road in front of a car. Toyota hopes to have this technology available to customers by 2015.
The Japanese automaker is also testing a suite of technologies called Automated Highway Driving Assist (AHDA). The key part of this is a new adaptive cruise control system that uses vehicle-to-vehicle (V2V) communications rather than a radar-based system. This cooperative-adaptive cruise control allows vehicles to communicate their acceleration and deceleration data with other cars, which Toyota says this helps to improve fuel efficiency and traffic flow. Also a part of AHDA is the Lane Trace Control feature, which sounds like a next-gen lane keep assist. This system uses cameras, radar and a computer to keep the vehicle in a "smooth driving line" by being able to change steering angle, engine torque and braking force. Toyota says this technology could be in place by the "mid-2010s."