By Adrienne Roberts
Toyota Motor Corp. and Mazda Motor Corp. were offered at least $700 million in combined incentives to steer a $1.6 billion new factory investment to northern Alabama.
The package, disclosed Thursday by various officials, includes a $379.9 million incentive from the state of Alabama and $320 million from the city of Huntsville, where the plant will be based. The two Japanese auto makers evaluated several states in 2017 for the project, which is expected to create 4,000 jobs and make up to 300,000 vehicles a year by 2021.
Tax and other incentives have come to play a major role in luring companies to hire and invest in various regions of the U.S. Toyota /zigman2/quotes/200537742/composite TM +2.66% /zigman2/quotes/203803129/delayed JP:7203 +2.29% already has major parts-making operations in Alabama and builds cars in several U.S. assembly plants, while Mazda’s /zigman2/quotes/204777714/delayed JP:7261 -3.05% U.S. presence is mostly confined to selling cars.
During a press conference Wednesday staged to announce details of the investment, Toyota President Akio Toyoda said Alabama officials helped lay the groundwork for “another made-in-America success story.” It is unclear if the entirety of the financial-incentive package has been disclosed.
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