A little over two years ago, Toyota and Mazda signed a long-term partnership that they suggested was “mutually beneficial” for both firms. This partnership focuses on shared technology through joint manufacturing. To this day, Toyota and Mazda had agreed that that they would build a new factory in the United States where they can develop and produce electric vehicles, according to Nikkei.
Both companies invested a total of $1.6 billion to build the factory. This will provide 4,000 jobs to US residents, who will be able to produce 300,000 units annually. Each company will be focusing on their own needs - Mazda will be producing crossovers while Toyota will be building Corollas for North America. The plant will not be operational until sometime in 2021.
That is not all that’s planned for the Japanese automakers. They will also begin developing technologies that are needed for the growing EV market, including advanced safety systems and such. Other than that, Toyota and Mazda plan to share more models, and the former will begin supplying a commercial two-box van to the latter in Japan.
For the sake of involving numbers, Toyota will be getting a 5.05 percent share in Mazda, while Mazda gets a 0.25 percent share in Toyota - this is just fair for both parties. The 50-50 joint venture’s new factory will likely be located somewhere south of the US.
As mentioned earlier, sources confirm that the next-generation Toyota Corolla will cover a percentage of the 300,000 cars that will be built in the facility sometime in 2021, where 4,000 employees will be working. Alongside the Corolla is a Mazda SUV model that has not been specified yet.
In other news, Toyota also mentioned in 2015 that they will be building a factory for the Corolla in Mexico. This has already commenced, and it will be built at the Bajio region which should be ready for operations by 2019. Toyota has another facility in Bajio where they have been building their pickup trucks. We do not know whether building the United States facility will have an effect on the new facility in Mexico, where the company plans to hire 2,000 employees.
As of now, we do not have complete details of the partnership between Toyota and Mazda, specifically their plans regarding electrification of vehicles. But as said earlier, the Japanese automakers are going to share the costs of R&D to speed up the process and of course, to save some money. Having said that, there will also be more brains developing the new technology. We will hear more about this partnership when the company makes an official statement.