August 5, 2017

WINNING: Toyota Gets on Trump’s Good Side With $1.6 Billion U.S. Factory.

Toyota said it plans to open the factory with Mazda by 2021, with the location yet to be decided. Eventually, the plant will be able to produce 300,000 vehicles and employ 4,000 people, it said.

Half of those vehicles will be a new Mazda crossover. The rest will be Corolla sedans, originally slated to be made at a new Toyota plant in Guanjuato, Mexico. That decision had earned the ire of Mr. Trump, who tweeted in January “no way” to the plant and threatened Toyota with a “big border tax” unless the Corolla was made in the U.S.

Within hours of Friday’s announcement, Mr. Trump tweeted: “A great investment in American manufacturing!”

Toyota is obeying the letter, but not necessarily the spirit, of Mr. Trump’s edict. That is because the auto maker is going ahead with the Mexico plant—it just won’t be making Corollas. Instead, it will make the Tacoma pickup truck, nearly doubling production capacity of the popular model to 400,000 vehicles.

That’s a win-win.

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