Toyota, Mazda set to announce $1.6 billion U.S. plant

  • Toyota, Mazda set to announce $1.6 billion U.S. plant

Toyota, Mazda set to announce $1.6 billion U.S. plant

Pending approvals and authorization by relevant government agencies, the companies will begin to examine detailed plans with the goal to starting operations of the new plant in 2021. Toyota was on the receiving end of one of Trump's tweets for its plans to make the Corolla for the United States market in Mexico.

And as for the shared capital structure, Mazda and Toyota will take equal value stakes in each other. Toyota said Trump's views had not influenced the decision.

The biggest news is the announcement of a new joint manufacturing plant in the U.S., with the aim to start production there in 2021. "Because of its strong dependence on North American market, Mazda absolutely needs to expand its manufacturing footprint here".

But that fell short of the 10.3 million vehicles VW reported selling for a 3.8 percent bump. If not, the plant will have the flexibility to shift to another model, according to spokesman Scott Vazin. Toyota will have a five percent share of Mazda whilst Mazda will take a 0.25 percent share of Toyota.

"Mazda has been studying the Toyota Production System, with direct help from Toyota, since the 1970s", said Shook, a former Toyota engineer.

When it comes to technology collaboration, Mazda and Toyota say they will jointly develop electric cars. But recent breakthroughs in batteries allow for longer travel per charge. The traditional industry kings also now face a challenge from a rival alliance anchored by Renault and Nissan.

Toyota ramped up incentives to move slow-moving passenger cars, but it hopes to rein in the outlays with the launch of the next-generation Camry sedan later this year. The AP reports Toyoda cited growing competition from companies that have recently entered the auto industry like Google, Apple and Amazon. "That's why I feel it has become increasingly important for us automakers to gather new partners without seeing things in confrontational perspectives".

A person briefed on the matter, who did not want to be identified because an official announcement has not been made, confirmed the partnership.

Mazda said it would make crossover models at the plant for sale in North America.

All Corollas now sold in the USA are made in Ontario, Canada or Mississippi. They will also collaborate on automated vehicle technology.

Analysts said the plan was more than a political ploy. The joint venture would cost approximately $1.6bn, equally funded by Mazda and Toyota, and create up to 4,000 jobs.

Toyota Motor Corp raised its full-year profit forecast by 16 percent on Friday, citing expectations of a weaker yen, after posting a smaller-than-expected drop in quarterly profit.

With worldwide sales roughly one-tenth that of compatriot Toyota Motor Corp's, Subaru reported a 12.3 percent jump in USA sales for the quarter, even as many of its rivals have been hit by both an overall slowdown in the US market from record levels a year ago and a growing preference for bigger vehicle models, versus the sedan.