BMW, the world’s largest automaker, will shutter a $10.7 billion U to Alabama plant after nearly six years of construction, according to a new report.
The move is the latest in a series of efforts by the U. S. automaker to consolidate its U. manufacturing operations to the south and south-central parts of the state.
The automaker has announced several layoffs over the past few months, including its headquarters in Huntsville, the largest U. States city with a population of about 10 million.
The company is now expected to close the plant on Feb. 1.
A company spokesperson told the AP that the company is looking for a new source of investment for the new plant.
The U.s. automaking industry has faced challenges in recent years, especially in the South, where some states and cities have banned certain types of cars or vehicles that the U to import.
The industry also has struggled to make inroads in parts of Texas and Oklahoma that are still heavily rural and without a large enough supply of the most popular parts of many cars, including engines, transmissions, and transmissions.
More from Bloomberg: BMW will move about 10,000 workers from Alabama to other parts of its U business as part of the deal, BMW said on Tuesday in a statement.
The announcement follows a decision by the state last year to scrap plans to build a new plant in Hunts, a key hub for BMW’s U business.