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Mazda, Toyota sign new joint-venture

The new joint-venture will see the opening of a new plant in Alabama.

Mazda and Toyota have officially established a new joint-venture company known as Mazda Toyota Manufacturing, U.S.A., Inc., or MTMUS for short. The new MTMUS entity, which has been in the works for some time, will soon begin construction of a new vehicle plant in Huntsville, Alabama.

The joint-venture is an even 50-50 split between the two companies. The new MTMUS plant will build 150,000 units of a new Mazda SUV per year and 150,000 units of the Corolla compact for Toyota each year. Each automaker will spend $800 million on the plant, netting a combined investment of $1.6 billion.

"We hope to make MTMUS a plant that will hold a special place in the heart of the local community for many, many years," said Mazda's Executive Officer Masashi Aihara, who will serve as President of MTMUS. "By combining the best of our technologies and corporate cultures, Mazda and Toyota will not only produce high-quality cars but also create a plant employees will be proud to work at and contribute to the further development of the local economy and the automotive industry."

"The new plant, which will be Toyota's 11th manufacturing facility in the U.S., not only represents our continuous commitment in this country, but also is a key factor in improving our competitiveness of manufacturing in the U.S.," said Hironori Kagohashi, executive general manager of Toyota and MTMUS's Executive Vice President. "We are committed to realizing a highly competitive plant and producing vehicles with the best quality for customers by combining Toyota and Mazda's manufacturing expertise and leveraging the joint venture's synergies."

MTMUS will soon begin land preparations for the new plant, with full-scale construction slated to begin next year. The plant is scheduled to be up and running by 2021. The facility will eventually employ 4,000 people.