Toyota initially said it would build its Corolla compact sedan at the Huntsville plant - which will be operated in a joint-venture with Mazda - but the automaker has officially scratched those plans.
A statement says the change of plans for the Alabama factory is because of a changing market and increasing demand for light trucks and SUVs.
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A Wednesday press release announced that the plant, which is under construction now, will assemble a new, yet-to-be named Toyota SUV along with Mazda's yet-to-be named crossover model, said Victor Vanov, Corporate Communications for Toyota Motor North America on assignment at Mazda Toyota Manufacturing. But the ultimate impact will be good, Ivey said, because of what Toyota will now be building. US new vehicle sales fell 2.2% in the first half of 2019.
Still, U.S. auto industry sales have been declining, and there is some concern the new plant could exacerbate overcapacity and pressure vehicle prices. As a result, it's possible that Toyota decided there wasn't enough demand to justify having two US plants building the Corolla. Mazda Toyota plans to release details on the new vehicles later.
Toyota will now rely on its MS plant and Japan for Corolla production, a spokesman said.