According to the Los Angeles Times, a town three hours southwest of Tokyo called Toyota City has gone from being the envy of Japan’s economy to the city with the country’s highest unemployment rate seemingly overnight. What happened? As its name implies, this town is comprised almost entirely of men and women who work for Toyota, the largest automaker in the world – the very same manufacturer that is facing its first year-long operating loss in company history.

 Because the city’s well-being rises and falls right along with the automaker that it is so dependent on, Toyota City’s finances are looking pretty dire for the upcoming year, with a projected drop in corporate tax collections of 96.3 percent. Interestingly, city officials have found an American analog with which to compare themselves: Detroit.

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Last week, we told you how despite the downturn, Daimler is upping its investment in the state of Michigan, coming to terms with the city of Ann Arbor to build a new hybrid and electric R&D facility. Now, Automotive News is reporting that the automaker is expected to actually expand its Vance, Alabama production plant.

If the rumors are true, the Mercedes-Benz plant (which currently builds GL, M, and R class vehicles) will benefit from a $290 million investment that is to begin within 60 days. The news evidently leaked out after company officials contacted the Tuscaloosa County Industrial Development Authority about property and sales tax breaks (which it apparently received).

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