For Toyota, it's all about newcomer standing



Toyota’s truck meeting plant in Texas. The corporate has been shrewd in putting new manufacturing unit investments in states the place it enjoys newcomer standing, whereas gaining clout with extra state governments and with Congress. Picture credit score: BLOOMBERG

The place will it land?

That is the $1.6 billion query since Toyota Motor Corp. and Mazda Motor Corp. hatched plans to construct North America’s latest auto meeting plant within the U.S.

The manufacturing unit, little doubt, is setting off a frenzied sweepstakes amongst states longing for the fats financial improvement prize and a few four,000 jobs.

Whereas the price of the plant is being shared equally by Toyota and Mazda, let’s face it: Toyota might be going to name the photographs on this one.

So some governors in all probability should not trouble making a fast name to Toyota Metropolis or Plano, Texas, dwelling to Toyota’s new North American headquarters.

The corporate has been shrewd in putting new manufacturing unit investments in states the place it enjoys newcomer standing. The technique — unfold the roles and wealth round — has helped Toyota construct huge clout with a number of states however extra importantly with Washington, D.C., particularly these in Congress.

So scratch Michigan, dwelling to Toyota’s rising r&d tech heart close to Ann Arbor.

And Kentucky, West Virginia, Indiana, Alabama, Missouri, Tennessee, Mississippi and Texas face enormously lengthy odds — they’re already dwelling to main Toyota meeting or powertrain vegetation.

I would guess on Georgia, Arkansas, presumably one of many Carolinas, perhaps even southern Illinois. (Although Illinois, which is experiencing a fiscal disaster, has zero room to throw cash at an automaker with a $50 billion-plus money pile.)

The successful website will seemingly be within the Midwest or rising south — and nonetheless near Toyota’s huge provider community whereas offering sturdy transportation and logistics to help exports.

Wisconsin, not dwelling to a automotive plant since Jeep left (Kenosha) years in the past and GM exited (Janesville) extra lately, may very well be a darkish horse on this race. President Donald Trump narrowly carried the state in 2016 however isn’t a shoo-in to repeat in 2020. However I doubt Toyota will wander that far north and even curry favor by contemplating Trump’s re-election prospects in making a choice.

My cash is on Arkansas, the place Toyota could be the primary automaker to put stakes down with a significant meeting plant.

It will not harm that Trump carried the state, both.

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