Mazda and Toyota to work together
As we reported earlier today, Mazda and Toyota have indeed taken a step towards increased collaboration, particularly in the U.S.
The giant Japanese car manufacturers have just signed off on a deal that will see them build and share a new car production facility in the USA.
Key Points from new Toyota/Mazda deal:
- Toyota and Mazda to build $1.6 billion U.S. assembly plant
- The plant will build the Toyota Corolla and a new Mazda crossover/SUV
- The brands will jointly develop electric vehicle technologies
- Toyota will take a 5% stake in Mazda (at a cost of around $450 million USD)
- Mazda will take a 0.25% share in Toyota
Reuters reports that the plant will be capable of producing 300,000 vehicles a year, with production divided between the two automakers, and employ about 4,000 people.
The new plant is expected to come online by 2021.
While the two car makers have also confirmed that the deal will see them work together to develop in-car information technologies and automated driving functions.
For Mazda, the deal sees the car company get a manufacturing foothold in the U.S., at present, all Mazda vehicles sold in the U.S. are imported into the nation – primarily from Japan and Mexico.
Janet Lewis, head of Asia transportation research at Macquarie Securities, told Reuters that Mazda has been behind the eight-ball on electric vehicle and hybrid technology development, an area where Toyota has been at the forefront.
“Mazda needs electrification technology. In the past they’ve pooh-poohed EVs, they’ve felt that they can make internal combustion engines more efficient, but the bottom line is that globally you need to have this technology.”
Japanese Trade Minister Hiroshige Seko welcomed the deal.
Reuters has reported that Seko said he was sure the tie-up between the two companies would contribute to the development of electronic vehicles.
He also said the government would consider ways to support the spread of next-generation cars including electric, plug-in hybrids and cars running on fuel cells.
Well bring you more on this developing story as it comes to hand, including any Australian reaction and impacts.