Japan's Toyota, Mazda to form capital alliance, launch plant in US

Ann Santiago
August 5, 2017

Friday's announcement builds on an existing partnership. Since then, both companies have discussed various areas to explore, based on the principle of building an equal and favorable relationship in the long term.

The companies said their collaboration will respect their mutual independence and equality.

He campaigned on promises to increase manufacturing and expand employment for American auto workers.

It's something that can't be said about Toyota, which shook up the industry with the original Prius and now has hybrid, plug-in hybrid, and EV versions of many of its models.

The site will reportedly have the capacity to create 300,000 vehicles a year, and is expected to be operational by 2021. The two will build a $1.6 billion plant in the United States - they didn't say where exactly - that will create up to 4,000 jobs and should be online in 2021.

Janet Lewis, head of Asia transportation research at Macquarie Securities, said: "Mazda needs electrification technology".

Toyota and Mazda will invest $1.6 billion to produce crossover models and Toyota's Corolla sedan in the USA starting 2021. Mazda will make crossover models there that it plans to introduce to North America.

Toyota and Mazda To Build US Plant -- WSJ

Toyota initially meant to build Corollas, the world's best-selling model, in a new plant in Guadalajara, Mexico. There will be no substantial impact on Toyota's investment and employment plan there.

With environmental regulations being tightened in many countries, competition over the development of vehicles with advanced technology has been increasingly fierce. The two Japanese automakers also will work together on electric-car technology.

Both parties would also be cooperating on electric vehicles. In addition, Toyota is to supply a compact commercial "two-box" van to Mazda in Japan.

The venture is rather dryly being called a "business and captal alliance", and is the next stage of a partnership that technically started back in May 2015.

Mazda would also take a stake in Toyota, the report said. Mazda will, in turn, get a similarly valued 0.25 percent of Toyota.

The team-up has led to a flurry of announcements on the partnership's goal, including joint EV tech development, a new factory in the USA and a whole host of juicy product details.

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