Their aim is to develop a diverse range of models including mini-vehicles, passenger vehicles, SUVs and light trucks
By doing so they hope to reduce costs and lead times and create flexible and rapid response to changing market trends.
This announcement comes after the news last month that Toyota and Mazda would collaborate on an electric car and advanced safety technology.
In a statement, Toyota stated they will combine the strengths of each company in the hope of creating more market acceptance of EVs.
“With EVs yet to find widespread market acceptance, the huge investments and time required to cover all markets and vehicle segments is a pressing issue for individual automakers when responding to the widely varying demand for vehicles around the world so the new company aims to innovate the development process.”
Stay up to date with the latest Toyota News at behindthewheel.com.au