Toyota Corolla production, along with Mazda, will be located at the new factory in the U. S., USA Today reports.
Japanese automakers Toyota and Mazda on Friday confirmed plans to build a $1.6 billion U. S. assembly plant with up to 4,000 new jobs as part of an extensive new alliance — and Toyota said it would make the Corolla sedan at the factory instead of Mexico as previously intended.
The sweeping partnership between the two companies includes investments in each other and collaboration on development of electric vehicles and self-driving car technology.
The deal marks a symbolically significant shift for Toyota after the company faced withering criticism from President Trump for its plans to locate Corolla production at a new $1 billion factory under construction in the state of Guanajuato in Central Mexico.
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Toyota said Friday that it would maintain its investment and hiring plans at the Mexico plant. But it will locate additional production of the Tacoma mid-size pickup truck at the Mexico factory instead of the Corolla, which had been set to move there from an operation in Ontario, Canada.
The Corolla will be located at the new factory in the U. S., which will be established as a joint venture between Toyota and Mazda and will open by 2021. The companies have not yet picked a location, which is likely to trigger a bidding war from states seeking to spur economic development.
