Automaker Toyota Motor Corporation has announced plans to invest some $1.6 billion in new U.S. factories in a joint venture with Mazda.
In terms of revenue, Toyota is currently ranked as the world’s second-largest automotive manufacturer, only behind Volkswagen Group. Additionally, Toyota was the first automaker to build more than 10 million automobiles per year — a remarkable feat it achieved back in 2012. Since then, Toyota has continued to not only improve its footing in the automotive manufacturing sector, but also lead the market in terms of innovative and high-tech features. This, of course, is why Toyota is one of the world’s leading manufacturers of gas-electric hybrid vehicles.
Accolades aside, it appears that Toyota is now taking the initiative to help strengthen the U.S. manufacturing industry. According to a statement from the automaker, it will work closely with Mazda to invest $1.6 billion in new U.S. factories. News of this joint venture comes shortly after President Trump unveiled his plans for strengthening the country’s manufacturer sector. When asked about Toyota’s plan, President Trump responded on Twitter by saying it’s a “great investment in American manufacturing.”
There’s still no word yet on where exactly the new Toyota/Mazda factory will be located. However, the companies say it will create up to 4,000 new jobs for Americans, and it’s expected to be finished by 2021. Of course, that’s 4,000 new jobs created on the U.S. soil instead of overseas. As such, this partnership will help fulfill President Trump’s vision of “buy American, hire American.” While other companies are opening factories overseas to cut costs, Toyota and Mazda are planning to build here in the United States.
When speaking about the partnership, Mazda President and CEO Masamichi Kogai said the new alliance will help energize the automotive industry. “Nothing would please me more than if, through this alliance, we can help to energize the auto industry,” said Masamichi Kogai, Mazda president and CEO.
The country’s manufacturing industry has rebounded in recent years. According to one survey, employment in the manufacturing sector has increased for 10 consecutive months. In terms of economic growth, it has grown for eight consecutive years. Statistics such as these attest to the strength of our nation’s manufacturing sector. And with the help of companies like Toyota and Mazda, we’ll like see an even stronger manufacturing sector in the years to come.
What do you think of Toyota’s and Mazda’s plan to invest $1.6 billion in new U.S. factories?