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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.

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 propelled Alabama to a Top 5 ranking among auto-producing states. With the new Mazda Toyota Manufacturing plant in operation, these Alabama automakers now have a combined production capacity of 1.3 million cars and light trucks each year, including all-electric models that went into production beginning in 2022.

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 conventional and hybrid-electric powertrains per year.

Employment in Alabama’s automotive manufacturing sector today totals around 47,000, surging from just a few thousand in the days before Mercedes. Around 26,000 of these jobs are in Alabama’s growing automotive supplier network, which now counts 150 major companies.

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 2023, exports of Alabama-made vehicles topped $11 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 the state is building a cutting-edge $30 million training center focusing on EV and other technologies.

Quick Facts

  • Annual production capacity topping 1.3 million cars and light trucks
  • Around 47,000 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 approached $12 billion in 2023
  • Alabama produces 15 different passenger vehicle models, including three all-electric vehicles
  • Alabama is the No. 1 auto exporting state and in the Top 5 for auto production

Vehicle Manufacturers

  • Hyundai
  • Honda
  • Toyota
  • Mercedes-Benz
  • Mazda
  • Autocar
  • New Flyer

Automotive Supplier Companies

  • Kamtek
  • SMP
  • Lear
  • Johnson Controls
  • Eissmannn
  • Yoruzu
  • Nemak
  • Hwashin
  • Hanwha
  • Newman Technology
  • DAS
  • Grupo Antolin
  • GuyoungTech
  • Truck & Wheel Group
  • Brose
  • Boysen
  • AJIN
  • Topre
  • LeeHan
  • SAS
  • North American Lighting
  • Yutaka Technologies
  • BoltaWerke
  • Donghee
  • Dongwon
  • Halla
  • Honda Lock
  • HS Automotive
  • Kemmerich
  • KTH Leesburg
  • M-Tek
  • Nitto Denko
  • HTNA
  • Rainsville Technology
  • TS Tech
  • WKW Erbsloeh
  • ZF Chassis Systems

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