Mazda to produce electric cars together

Mazda to produce electric cars together

Mazda will make cross-over models there that it plans to introduce to that market, the companies said.

It is due to begin operations by 2021. It is expected to produce the Toyota Corolla and a Mazda SUV. Production will be split between the two auto giants. Toyoda denied that Trump's views influenced his decision.

Earlier this year, Mr Trump said Toyota would face hefty tariffs on cars built in Mexico for the USA market if they were made south of the border.

Toyota and Mazda have joined forces with the aim of producing 300,000 vehicles a year in a £1.6bn auto plant in the USA, as well as pooling investment into new technologies for electric vehicles and "connected cars".

According to Reuters, rival vehicle giants, Toyota and Mazda are expected to put their rivalry aside on Friday to start the construction of a $1.6 billion U.S. assembly plant. Toyota claims that the U-turn on where to produce the Corolla will have "no substantial impact on Toyota's investment and employment there" as the brand plans to produce the Tacoma pickup there instead. Toyota will pay about $450 million for a 5% stake in Mazda as part of the deal, while Mazda will buy a stake of the same value in Toyota. Toyota said in January it plans to invest $10 billion in the United States over the next five years to meet demand.

"It has also sparked Toyota's competitive spirit, increasing our sense of not wanting to be bested by Mazda". Industrywide, cars made up just 37 percent of total US sales in the first six months of the year.

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The sheer cost of the plant also makes a partnership logical, as it boosts cost-efficiency and economies of scale.

Toyota, which is strong in hybrid vehicles but has been behind in entering the electric vehicle market, apparently judged it necessary to strengthen the development of electric cars in cooperation with Mazda.

Mazda president and COE Masamichi Kogai said that he hopes, through the deal, to "help to energize the auto industry and create more vehicle fans by bringing together two competitive spirits".

"We don't have a lot of information because it's a joint venture with Mazda, and there were very few people in the loop in North America who knew about it, and we weren't one of them", said Mike Botkin, vice president of administration at Toyota Mississippi.

Mazda President Masamichi Kogai said he hoped that the partnership will help energize the industry.

Mitsubishi joined the Renault-Nissan alliance past year, after the French-Japanese group extended Mitsubishi a $2.2 billion lifeline to help it recover from a scandal over falsified fuel-economy ratings. Following Volkswagen's diesel emission scandal, major automakers around the world have announced that they will shift their main production from those vehicles to electric vehicles.

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