Mazda-Toyota hits 1 million vehicles made in Huntsville
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Mazda-Toyota Manufacturing rolled its millionth vehicle off the lines at its Huntsville plant. Photo: Courtesy of Mazda-Toyota Manufacturing
Mazda-Toyota Manufacturing has built 1 million vehicles in Huntsville.
Why it matters: The company exemplifies Huntsville's approach to economic development: offering major incentives to attract billions in private investment and thousands of jobs.
The latest: Mazda-Toyota Manufacturing's 1 millionth vehicle marks a "major production milestone," the company said in a news release Wednesday.
- "We're certainly proud of that journey," Mark Brazeal, vice president of administration and quality, told Axios. "But honestly, it just represents a production result, and that's not been our focus."
Catch up quick: Since production began five years ago, Mazda-Toyota has grown into a $2.3 billion venture employing 4,500 people, Brazeal told Axios.
- Another 3,000 to 3,500 people work for a dozen suppliers on or near the company's Greenbrier campus.
- Mazda-Toyota has generated more than $1.4 billion in payroll since 2021, and Brazeal said demand remains strong for the Toyota Corolla Cross and Mazda CX-50 the site produces.
- The company is working overtime to meet demand but has no plans for capital expansion. Instead, its focus is on "growing our capability," Brazeal said.
Zoom out: Mazda-Toyota began producing the Corolla Cross in September 2021 and the CX-50 in January 2022, reaching full two-shift production in summer 2023.
Zoom in: Huntsville used the Major 21st Century Manufacturing Zone Act, a form of tax increment financing (TIF), to fund incentives for Mazda-Toyota.
- The city's using the same mechanism on a TIF that encompasses a site nearby where Eli Lilly is planning a $6 billion investment.
- Mazda-Toyota was offered roughly $700 million in state and local incentives in 2018, in exchange for a commitment to invest $1.6 billion and create 4,000 jobs.
What they're saying: "We've met those targets and exceeded those targets," Brazeal said. "But I don't think that comes close … to the total return that the state, the city of Huntsville, North Alabama has received as a result of MTM."
Between the lines: MTM's philosophy is to become "the type of company that any hometown would love to have in their community."
- That comes down to investing in local nonprofits. MTM says it has contributed $4.4 million to the community, including $1.3 million through its grant fund and $660,000 toward educational initiatives.
- The company also offers employees an annual $3,000 child care subsidy, and has plans for an on-site solar farm as part of its carbon neutrality efforts.
The bottom line: "I like to think 1 million vehicles is not the finish," Brazeal told Axios. "It's just the start of MTM, and we're going to be here for generations."