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04 August 2017

Toyota and Mazda Announce New Joint Venture

No Obligation, Fast & Simple Free New Car Quote

Yesterday, we reported that Toyota and Mazda would likely form a new partnership and begin construction on a jointly owned factory in the U.S. Today, the two Japanese automakers made it official. Earlier today, they signed an agreement to create what they’re calling “a business and capital alliance.”

The companies plan to do a lot more than build a factory, though. They also announced plans to co-develop electric vehicles, connected-car systems, and safety technology. Expect more car sharing, like the Mazda2-based Yaris iA, as well.

The cost of the new factory, currently planned for 2021, will be split between companies. A site hasn’t yet been chosen, but the plant is expected to cost around $1.6 billion. Expect it to produce 300,000 vehicles a year and create as many as 4,000 new jobs. Toyota intends to build the Corolla there, while Mazda will use the new facility to make crossovers.

At the moment, plans to develop new connected-car technology revolve around creating a better infotainment system, something Toyota desperately needs. Expect to see more vehicle-to-vehicle and vehicle-to-infrastructure systems developed, too.

Fewer details are known about the other parts of this plan, though. They plan to co-develop electric vehicle technology but don’t yet have a specific plan for what that will look like. And while Toyota plans to supply a commercial van for Mazda to sell in Japan, there aren’t currently any plans for the automakers to share other vehicles with each other.

As part of their commitment to working together, Toyota and Mazda plan to both purchase part of the other’s company. Toyota will buy 5.05 percent of Mazda, worth about $451,247,500 (50 billion yen). Mazda will, in turn, get a similarly valued 0.25 percent of Toyota.

Source: Toyota

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