Representatives from Toyota and Mazda, as well as the state of Alabama, are expected to formally announce the venture later today. And Toyota has an engine plant in the Huntsville area, near where it is planning to put the new facility.
Most of Toyota's USA plants are in the South, and all are non-union.
The companies originally announced plans for a US plant in August when the two Japanese automakers signed a joint venture agreement, though the exact location was not known at that time.
Over the last 30 years Toyota, along with German and Asian automakers, has built a second auto industry in the United States, rivaling the operations of the Detroit Three automakers in size and employment, but with newer, and fewer unionized, plants.
"Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S". The plan calls for rolling out 300,000 passenger cars a year to the U.S. market.
Several states had competed for the coveted project, which will be able to turn out 300,000 vehicles per year and will produce the Toyota Corolla compact auto for North America and a new small SUV from Mazda.More news: Brooklyn Assemblywoman Indicted on Fraud Charges
A person briefed says the plant will be located in Alabama.
The person did not want to identify himself to the Associated Press because the decision hasn't been made public.
When Toyota-Mazda announced the joint venture and its plans to locate the plant in the USA, state officials made a huge push for the project, which is expected to eventually employ 4,000 people and generate a $1.6 billion investment.
Huntsville Mayor Tommy Battle hailed the Toyota-Mazda decision as a milestone development for the North Alabama city.
"With this announcement, our world changes overnight", said Battle.
Most foreign automakers have at least some production capability in the USA, most of which is dedicated to trucks and SUVs. But the automakers settled on Alabama following negotiations with local government. "It vaults Alabama to the top as an industry leader in producing the next generation of cars that will power our nation".
It's hard to predict auto sales in three years but, at present, Toyota may not need the factory for Corolla production.
Alabama is the fifth largest producer of cars and light trucks nationally and stands at the center of the growing Southeastern automotive region with a strong automotive presence including Toyota's engine plant in Huntsville. Prior to that, they were reportedly considering more than a dozen states.