Toyota, Mazda plan $1.6B U.S. plant
Toyota president denies Trump’s views had influence on decision to build factory
TOKYO— Japanese automakers Toyota Motor Corp. and Mazda Motor Corp. plan to spend $1.6 billion (U.S.) to build a joint-venture auto manufacturing plant in the U.S. — a move that will create up to 4,000 jobs, both sides said Friday.
The plant will have an annual production capacity of about 300,000 vehicles, and will produce Toyota Corollas as well as a new Mazda crossover vehicle for the North American market. Toyota and Mazda are forming a capital alliance and will split the plant’s cost equally.
Toyota wouldn’t say where the plant would be built, but because the new plant will build the Corolla, chances are it will be located near Toyota’s current Corolla plant in Mississippi to be close to parts supply companies. The plant to expected to begin operations by 2021. After reassessing the market, Toyota has changed its plan to make Corollas at a plant in Guanajuato, Mexico, now under construction, and instead will produce Tacoma pickups there, Toyota president Akio Toyoda said.
President Donald Trump had criticized Toyota for taking auto production and jobs to Mexico. With the investment, both automakers can hope to prove their good American corporate citizenship and appease the Trump administration’s concerns about jobs moving overseas.
Toyoda denied that Trump’s views influenced his decision. Trump welcomed the announcement in a tweet: “Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!”
Toyota plans to acquire a 5.05 per cent stake in Mazda, valued at 50 billion yen ($455 million). Mazda, which makes the Miata roadster, will acquire 50 billion yen worth of Toyota shares, the equivalent of a 0.25 per cent stake. The investment deal is expected to be final by October.
The companies also plan to work together on various advanced auto technology, such as electric vehicles, safety features and connected cars, as well as products that they could supply each other.
In the past, Toyota was not overly bullish on electric vehicles, which have a limited cruise range. But recent breakthroughs in batteries allow for longer travel per charge. Japanese rival Nissan is allied with Renault SA of France and Mitsubishi, and is the global leader in electric vehicles. Their alliance led world vehicles sales for the first time in the first half of this year.