Toyota and Mazda Ink $1.6 Billion Plant Deal
Toyota Motor Corporation and Mazda Motor Corporation agreed on a joint business and capital alliance deal that will see the two automakers collaborate on the production of up to 300,000 vehicles per year at a new plant located in America. In addition to the new facility, which is expected to create up to 4,000 jobs, the two agreed to jointly develop technologies for electric vehicles and connected-car technology, advanced safety tech and expand complementary products where possible globally.
Expected to cost about $1.6 billion, this new joint production facility will become operational in 2021. It’s slated to turn out equal numbers of new Mazda crossover/SUV models and Toyota Corollas, all destined for the North America. Toyota will acquire about five percent of Mazda and Mazda will take a 0.25 percent share of Toyota pending approval. That part of the deal is scheduled to take place in early October.
Two years ago, Toyota and Mazda entered an agreement to leverage resources in ways that would mutually benefit both parties. Since then the effort has continued, culminating in this latest and most far-reaching accord intended “to create new types of value for future mobility and achieve further sustainable growth.”
"The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars,” stated Toyota President Akio Toyoda at the signing ceremony in Tokyo. “It has also sparked Toyota's competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities."
Mazda President and CEO Masamichi Kogai noted: "Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders."