Will set up 300,000 unit capacity plant in the US, jointly develop technologies for electric vehicles and connected cars, collaborate on advanced safety technologies, and expand complementary products.
04 Aug 2017 | 5604 Views | By Autocar Pro News Desk
Toyota Motor Corporation and Mazda Motor Corporation have signed an agreement today to enter a business and capital alliance in a bid to further strengthening their partnership. Today's pact follows two years of collaborative discussions between the two companies.
The two automakers have agreed to establish a joint venture that ...
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Toyota Motor Corporation and Mazda Motor Corporation have signed an agreement today to enter a business and capital alliance in a bid to further strengthening their partnership. Today's pact follows two years of collaborative discussions between the two companies.
The two automakers have agreed to establish a joint venture that produces vehicles in the United States, jointly develop technologies for electric vehicles and connected cars, collaborate on advanced safety technologies, and expand complementary products.
In addition, together with the aim of advancing and strengthening their long-term collaboration, Toyota and Mazda agreed to a capital alliance arrangement that preserves independence and equality for both companies.
Marking the agreement, Toyota President Akio Toyoda said: "The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. 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."
Representing Mazda, president and CEO Masamichi Kogai said: "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."
Car making JV in the US
The JV plant in the U.S. with equal funding contributions would have an estimated annual production capacity of approximately 300,000 units. The plant, which will see a total investment of approximately US$1.6 billion and create up to 4,000 jobs, will commence operations in 2021.
At the new plant, Mazda expects to produce cross-over models that Mazda will newly introduce to the North American market, and Toyota plans to produce the Corolla for the North American market. By producing vehicles in the U.S., Mazda aims to build a production structure to further grow in North America. These activities will allow the company to more quickly respond to its customers' needs depending on the region and model.
By further increasing its production capacity in the U.S., Toyota is to further pursue management that is closer to the region, as a measure to improve its response to the growing North American market. At Toyota's new plant in Guanajuato, Mexico, which is currently under construction, Toyota plans to produce the Tacoma, instead of the Corolla. There will be no substantial impact on Toyota's investment and employment plan there.
Joint development of EVs, connected and advanced safety technologies
With increasing demand and expectations for electric vehicles worldwide, Toyota and Mazda are to explore joint development of technologies for the basic structure of competitive electric vehicles, mobilising and exchanging expertise freely and actively.
Toyota and Mazda will also work together to jointly develop technologies for onboard multimedia infotainment systems in preparation for increased use of in-car information technologies and the increasing demand for connected technologies. In addition, Toyota will cooperate with Mazda in Toyota's vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies with the ultimate goal of creating a mobile society devoid of accidents.
Expanding complementary products
Currently, Mazda is supplying a compact sedan to Toyota in North America. In addition, Toyota is to supply a compact commercial "two-box" van to Mazda in Japan. Beyond this, the companies will further explore the possibilities of other complementary products on a global level.