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Toyota and Mazda joining forces to build a $1.6 billion plant in the U.S.

Toyota and Mazda joining forces to build a $1.6 billion plant in the U.S.


Toyota Motor Corp announced on Friday the intent to take a 5% share of the smaller Japanese rival firm Mazda Motor Corp, as part of an alliance between the two companies that will allow them to build a $1.6 billion assembly plant in the U.S., where they are planning to work together on electric cars.

The announcement represents good news for the U.S. President Donald Trump, which is planning to bring back into the country the manufacturing and the jobs for the U.S. workers.

The location of the new plant is not yet public, but the facility is set to become operational in 2021, and will produce about 300,000 vehicles per year (production will be divided between the two carmakers), and will employ about 4,000 people.

The alliance between the two car manufacturers seems to be an attempt to catch up the rival companies in the race to developing electric car technology.

At the same time, the alliance is due to tightening global emissions rules are tightening, and due to the fact that nowadays many new players are entering the electric car market.

Toyota President, Akio Toyoda, stated about the alliance between the two car manufacturers the following: “There will be new rivals appearing – Apple, Google – these are IT companies, we also need to compete with them, too”.

Akio Toyoda is a grandson of the company’s founder Kiichiro Toyoda, and in 2016 he was appointed to lead Toyota’s newly formed electric car division.

The German auto manufacturers such as Daimler and BMW, are working today on new technology that will create a link between electric vehicles and autonomous driving.

Toyota plans to sell only vehicles with zero emissions by 2050, but at the same time it tried to invest heavily in hydrogen fuel-cell vehicles (FCVs).

Other carmakers such as Nissan Motor Co, Tesla and Volkswagen AG, are considering the pure electric cars as the most viable vehicles with zero emissions of today.

The new alliance will allow the two car manufacturers (Toyota and Mazda) to work together to develop in-car information technologies and functions specific to automatic driving.

Toyota was the world’s second-largest automaker by vehicle sales in 2016, and due to the new alliance will take a 5% share of Mazda, while Mazda will take only 0.25% share of Toyota.

Mazda’s Executive Vice President, Akira Marumoto, said about the alliance between the two car manufacturers the following: “We will study the possibility of expanding the capital alliance, but the basic premise is that autonomy is assured”, which means that creating autonomous electric vehicles is the mean goal of the alliance.

It is great that more and more car manufacturers are getting involved in the development of electric cars with zero emissions, which shows that in the future the air that we breathe will be much cleaner.

Danny Ovy

Danny Ovy

I am a writer and reporter for the clean energy sector, I cover climate change issues, new clean technologies, sustainability and green cars.

Danny Ovy
Danny Ovy

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