Toyota and Mazda To Build US Plant

Toyota to take 5 percent stake in Mazda Nikkei

The stats included the number of Toyota employees in America, how much money the automaker has invested in the USA and how much it plans to invest stateside in the future.

In the past, Toyota was not overly bullish on electric vehicles, which have a limited cruise range. For Mazda in particular, it's a shortcut to getting into the EV business. To buy five per cent of Toyota, whose value is in the region of £130 billion, Mazda would have to pay more than the £6.15 billion price tag attached to its whole company.

Infotainment and safety tech is another area of focus for the venture.

Mazda, based in Hiroshima, Japan, used to have a powerful partner in Dearborn-based Ford Motor Co., which bought 25 percent of Mazda in 1979, and raised it to 33.4 percent in 1996.

The two automakers are expected to announce the plan later in the day. The new United States assembly plant will boost manufacturing and expand employment for America by creating 4,000 jobs in the auto industry.

Toyota and Mazda continued: "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".

Toyota said it would not move Corolla production to its plant in Mexico, which is now under construction, but it would instead make its Tacoma model there. The plant could produce about 300,000 cars a year.

The companies said their collaboration will respect their mutual independence and equality.

Meanwhile, Mazda now has no production facilities in the USA, but has previously operated factories in Kansas and MI, one of the Midwestern, rustbelt states Trump promised to return to prosperity during his presidential campaign.

Toyota often pulls from other plants in the world, including Japan and Turkey, to feed products to US dealerships when supply of popular vehicles runs low. He had threatened Toyota and other auto companies for selling cars to American customers that were built elsewhere. Toyota, the second largest maker of autos in the world by vehicle sales in 2016, will hold a share of 5% in Mazda, extending the dominance it has in the auto sector of Japan.

This alliance doesn't mean that both brands are now symbiotic.

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