A joint venture between Mazda and Toyota is altering its production plans for a new factory being built in north Alabama.
A Toyota logo is displayed at the 89th Geneva International Motor Show in Geneva, Switzerland March 5, 2019.
The company said Wednesday that the decision is being made in response to growing demand for SUVs and light trucks.
Toyota said Wednesday, July 10, 2019, that it will scrap plans to build the Corolla compact vehicle at a new factory under construction in Alabama.
In August 2017, Toyota and Mazda announced a collaboration to establish MTMUS, a $1.6 billion joint venture that will assemble up to 300,000 vehicles annually.
Up to 4,000 new jobs will be created and hiring is underway. USA new vehicle sales fell 2.2% in the first half of 2019.
Although pure speculation, it's possible Toyota's unnamed SUV could be based on a Mazda platform. But the ultimate impact will be good, Ivey said, because of what Toyota will now be building.
Early in 2017, then-President-elect Donald Trump criticized Toyota and threatened hefty tariffs against the Japanese automaker if it built its Corolla sedan for the US market in Mexico.