Toyota and Mazda form EV alliance 04 | 08 | 2017
JAPANESE CAR GIANTS Toyota and Mazda have agreed a business alliance which will involve the two companies working together to develop new technology, including electric vehicles (EVs).
Expanding on a technology partnership the companies signed in 2015, under the new deal each firm will take a share in the other worth ¥50 billion (£345 million). This gives Toyota a 5.05% stake in Mazda and Mazda a 0.25% share in Toyota.
The alliance will involve the two firms working together to “explore joint technologies” for the development of EVs, along with infotainment, connected car systems and advanced safety technology.
It’s also expected the two companies could also supply each other with more badge-engineered models. In North America, Toyota currently sells a version of the Mazda 2 rebranded as the Yaris iA. Under the new deal, Toyota will supply a box truck to Mazda for the Japanese market.
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As part of the new alliance, Toyota and Mazda have agreed to explore establishing a joint $1.6bn (£1.22bn) venture plant in the U.S. with equal funding contributions. The plant would have an estimated annual production capacity of approximately 300,000 units.
Pending approvals and authorisation by relevant government agencies, the companies will begin to examine detailed plans with the goal to starting operations of the new plant in 2021. The plant will require a total investment of approximately 1.6 billion U.S. dollars, and will create up to 4000 jobs.
“The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars,” Akio Toyoda, Toyota president, said.
"This is a partnership in which those who are passionate about cars will work together to make even better cars. It is also the realisation of our desire to never let cars become commodities.”
Related: Electric Mini to be built in the UK
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Jim McGill