Car­mak­ers seal tie-up, plan US plant

New Straits Times - - Business -

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

REUTERS PIC

Mazda and Toy­ota will work to­gether to de­velop elec­tric ve­hi­cle tech­nol­ogy, ac­cord­ing to a reg­u­la­tory fil­ing.

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