Toyota And Mazda Are Joining Forces On Electric Cars - And A New US Factory

Toyota and Mazda have confirmed a deal that would see each invest in the other and together build a new joint-owned factory in the USA.

The forward-looking manoeuvre would see Toyota take a five per cent slice of Mazda, while Mazda would take around 0.25 per cent of Toyota; the maker of the Prius is a much bigger, much more valuable entity, after all. To buy five per cent of Toyota, whose value is in the region of £130 billion, Mazda would have to pay more than the entire company is worth.

The partnership will have a number of strands, with two we’re most interested in: one based out of a new plant in the US, building Toyota Corollas and Mazda crossovers, and another that would see the two companies collaborate on electric vehicles. Toyota, in particular, has decades of invaluable expertise in hybrids, and is rumoured to be working on seriously next-gen solid-state battery technology for full-electric cars, having intentionally avoided the current tech, which isn’t good enough to persuade the public.

While the factory would, in theory, be active by 2021 and aim to produce 300,000 cars per year, employing 4000 workers, what’s not clear is whether there is a platform-sharing deal in place to allow Mazda’s American faux-SUVs to be built on the same production line as the future Corolla. There could be two separate lines in the same factory, but with an eye on collective costs, a shared chassis would make sense. The two brands have just stated that they’re looking into it.

This isn’t the first time Toyota has partnered with a much smaller Japanese firm. If we need to remind you about the GT86/BRZ project, for example, you’re on the wrong website. The company’s vast success and influence gives its management the feeling that it’s obliged to help its compatriots, particularly the relative minnows, strengthening the Japanese car industry as a whole in the process.

An announcement could arrive at any time, but there is no guarantee that either Toyota or Mazda will release any further useful details. A location for the US factory will be chosen soon.

Via: Automotive News