In an announcement made by both companies on Friday, Toyota Motor Corp. and Mazda Motor Corp. will be spending $1.6 billion to jointly build an auto manufacturing plant in the U.S. that will create up to 4,000 jobs.
Though the companies did not disclose where the plant will be built, it will have a capacity to produce 300,000 vehicles a year. It will also be producing Toyota’s Corollas and Mazda’s new crossover vehicle for North American buyers.
The plant is expected to be completed by 2021.
Toyota President Akio Toyoda said the company has changed its plans regarding its plant in Guanajuato, Mexico. The company had previously planned to make Corollas there but will not product Tacoma pick up trucks instead.
Toyota has had backlash by the President of the U.S. for taking auto production and jobs to Mexico. President Trump has argued that cars for the U.S. market should be built in the U.S.
After the announcement from the Japanese car manufacturers, Trump tweeted, “Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!”
Disclaimer: We have no position in Toyota Motor Corp (NYSE: TM) and have not been compensated for this article.