Carmakers seal tie-up, plan US plant
TOKYO: Toyota Motor Corp and Mazda Motor Corp have agreed to buy stakes in each other and jointly build a US$1.6 billion (RM6.8 billion) United States factory, as carmakers band together to share costs and investments in new technology.
Toyota will acquire about five per cent in Mazda, which will hold a 0.25 per cent in the bigger carmaker in a capital tie-up, according to a Japanese regulatory filing.
Meanwhile, the planned car plant will create about 4,000 jobs. Mazda lacks any US factories, which exposes one of Japan’s smallest carmakers to both trade and currency risk.
United States President Donald Trump threatened to tax car imports and specifically attacked Toyota’s plan to open a Corolla plant in Mexico.
Shifting production of those cars from a plant in Canada enables Toyota to boost output of the RAV4 crossover.
American consumers are buying the model in record numbers, while Mazda also is seeing booming demand for its entry in that segment, the CX-5.
The two companies will also work together to develop electric vehicle technology, according to the filing. Bloomberg
Mazda and Toyota will work together to develop electric vehicle technology, according to a regulatory filing.