Toyota, Mazda partnering to build $1.6 billion auto plant in US

  • Toyota, Mazda partnering to build $1.6 billion auto plant in US

Toyota, Mazda partnering to build $1.6 billion auto plant in US

Toyota and Mazda are also planning to work together to develop connected-car technologies.

Reuters reported that Toyota had planned to produce Corollas at a new plant it is building but will now switch production of the small auto to a new assembly plant planned for the US.

With an annual production capacity of 300,000 vehicles, the opening of the plant is scheduled for 2021. For example, Toyota also has a 16.5 percent stake in Subaru Corp, which is Japan's sixth largest automaker. "Also, Mazda will get the benefit of all Toyota's advanced work on hybrids and electric vehicles". Specific details of the collaboration are yet to be announced but the deal focuses on technologies for the basic structure of electric vehicles, indicating a shared, flexible EV platform could be possible.

The agreement, signed on Friday (4 August) forms part of a wider partnership between the two companies which will also see them establish a joint venture plant in the U.S. to manufacture around 300,000 vehicles per year. Those plans earned a rebuke from U.S. President Donald Trump, who tweeted, "NO WAY!"

Trump welcomed the news, describing it on Twitter as a "great investment in American manufacturing".

"Now we face a battle with new rivals mainly in emerging markets and also a battle with IT companies such as Apple and Google", Toyota president Akio Toyoda said at a joint press conference.

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 prospect of a new factory in the US could set off a competition among states over its location.

Toyota, we intend to assemble the Corolla. In effect, Toyota will have now a 5% share of Mazda.

Lentz said he could not say what impact Trump's comments had on a decision that was under consideration for some time with Mazda because it was a decision made by executives at both vehicle companies in Japan.

Toyota is vying for the spot of No. 1 automaker in global vehicle sales against Nissan-Renault and Volkswagen AG of Germany, as the industry gradually consolidates.