When Mercedes-Benz announced plans to open its only U.S. assembly plant in Alabama in 1993, an industry was launched. Since then, Honda, Hyundai and Toyota, as well as an expanding network of automotive suppliers, have joined Alabama’s vehicle manufacturing industry. A new dimension was added to this industry when Autocar, a maker of heavy-duty work trucks, launched production in the state.
In a generation, accelerating growth in this critical sector of Alabama’s economy has turned the state into an important production hub for the industry.
Together, assembly plants operated by Mercedes, Honda and Hyundai have propelled Alabama to a Top 5 ranking among the states for the production of cars and light trucks. These Alabama automakers have a combined capacity topping 1 million cars and light trucks each year, rising to 1.3 million vehicles once the new Mazda Toyota Manufacturing assembly plant reaches full production.
Toyota, Honda and Hyundai also produce over 1.5 million engines annually, another sign of the sector’s strength in the state. Capacity upgrades will soon take that figure close to 2 million engines per year.
Employment in Alabama’s automotive manufacturing sector today approaches 40,000, surging from just a few thousand in the days before Mercedes. Around 24,000 of these jobs are in Alabama’s growing automotive supplier network, which now counts 150 major companies.
Both employment and production are receiving a massive boost from the Mazda Toyota Manufacturing joint venture assembly plant in Huntsville, where production began in 2021. The Huntsville facility will employ up to 4,000 workers after production fully ramps up at the $2.3 billion facility.
The output of Alabama’s auto industry is a powerful driver of economic growth for the state. Vehicles have become Alabama’s No. 1 export, with shipments to over 70 nations around the world every year. In 2021, exports of Alabama-made vehicles and parts topped $8.5 billion, led by shipments to Germany, China and Canada.
Thanks in part to training programs from AIDT and others preparing a skilled workforce, growth beneath the hood of Alabama’s auto industry will continue to pick up pace. Partners in the state’s automotive training program include the Alabama Community College System and the Alabama Robotics Technology Park in Decatur, where technicians learn how to operate advanced robots and automation processes in a one-of-a-kind facility.
Quick Facts
Annual production capacity topping 1.3 million cars and light trucks
Around 40,000 automotive manufacturing jobs
More than 150 Tier 1 and 2 automotive suppliers in the state
Toyota, Honda, and Hyundai produce over 1.5 million automotive engines annually
Exports of Alabama-made vehicles and parts exceeded $8.5 billion in 2021
Alabama produces 15 different passenger vehicle models
Transportation equipment is Alabama’s No. 1 export category
Alabama is the No. 4 auto exporting state
Vehicle Manufacturers
Hyundai
Honda
Toyota
Mercedes-Benz
Autocar
New Flyer
Automotive Supplier Companies
Kamtek
SMP
Lear
Johnson Controls
Eissmannn
Yoruzu
BOCAR
Nemak
Hwashin
Hanwha
MOBIS
Newman Technology
DAS
Grupo Antolin
GuyoungTech
Truck & Wheel Group
Brose
Boysen
AJIN
Borbet
Topre
LeeHan
SAS
North American Lighting
Adient
Yutaka Technologies
BoltaWerke
Bermco Aluminum
Donghee
Dongwon
Halla
Honda Lock
HS Automotive
Inteva
Kemmerich
KTH Leesburg
M-Tek
Nitto Denko
HTNA
REHAU
Rainsville Technology
SMART of Alabama
TS Tech
WKW Erbsloeh
ZF Chassis Systems