tiptrot.com June 22, 2018

Toyota and Mazda to build $1.6bn USA plant

05 August 2017, 12:09 | Cedric Leonard

Toyota and Mazda to build $1.6bn USA plant

Toyota and Mazda to build $1.6bn USA plant

The new USA plant aims to produce 300,000 vehicles a year and expects to employ about 4,000 people.

President Donald Trump publicly criticized the plan earlier this year, threatening a "big border tax" on vehicles imported to the United States from the Mexico plant.

Toyota wouldn't say where the plant would be built, but it's likely to be in the South, near the rest of the company's US factories.

Trump welcomed the news, describing it on Twitter as a "great investment in American manufacturing".

The new facility is just one aspect of the partnership Toyota and Mazda, with the two also planning to work together to develop electric vehicles and connected-car technologies, the sources said. 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. Toyota and Mazda will invest $1.6 billion to produce crossover models and Toyota's Corolla sedan in the U.S. starting 2021.

However, Toyota now says the said production will shift to the US. This will result in Mazda acquiring 0.25 percent of Toyota, and Toyota acquiring 5.05 percent of Mazda.

Last month, Trump complimented Toyota for completing its long-planned new North American headquarters in Texas.

Mazda had previously operated with Ford Motor Co.in a joint venture in the U.S. Toyota has worked with Subaru and others. Toyota now sells a version of the Mazda 2 rebranded as the Yaris iA in North America, and under the new deal, Toyota will supply a box truck to Mazda for the Japanese market.

Mazda will benefit from the deal that gives the small automaker a production foothold in the United States.

Toyota Motor Corp. and Mazda Motor Corp. have signed an agreement to enter a business and capital alliance, with the aim of further strengthening their lasting partnership.

Toyota has been forging alliances with domestic rivals in an effort to boost competitiveness.

Mazda is already "supplying a compact sedan to Toyota in North America", which happens to be the Mazda 2-derived Toyota Yaris iA Sedan that's built in Mexico.

Toyota has said it plans to invest $10 billion in the USA over the next five years.

Sales of small cars have slumped in the US amid steadily low gas prices.

Other News


Trending Now

Baby Blake Griffin? Clippers' Danilo Gallinari Injuries Hand Punching Opponent
According to USA Today, the Italian Federation said Gallinari suffered a fracture from the punch. Gallinari took a forearm to the face while being boxed out and he didn't take kindly to that.

Solar eclipse 101: This is why the sun disappears
The planetarium has stocked thousands of eclipse glasses, available in the gift shop for one dollar each. However, a partial solar eclipse will be visible in every US state on August 21.

Twitter's USA monthly active user base declined in Q2 2017
At current valuation, Twitter would be trading at 2.3x its best-case (or impossible case?) revenues. The company posted non-GAAP earnings of 8 cents per share, unchanged from the prior-year quarter.

Most Americans Support Open Transgender Military Service
Americans are increasingly dissatisfied with President Trump's on-the-job performance, according to new polls out this week. The startling polling results come after two of the more hectic weeks at the White House since Trump was inaugurated.

Gainesville police reject President's Trumps remarks about treatment of suspects
Trump said, miming the physical motion of an officer shielding a suspect's head to keep it from bumping against the squad vehicle .

ACA Reduced Disparities In Health Care Access
McCain for his vote and said that he wanted "to congratulate the American people" because better health care is on the way. What that health care bill will look like at the end of the Senate debate remains unclear.

Greece returns to debt markets after three-year hiatus
Greece is about to launch itself back on private borrowing markets, selling a five-year bond to replace existing debt. This gave Athens the chance to test without major financial risks its credibility in the markets.

Maduro presses on with Venezuela vote despite protests, condemnation
Its oil exports to the US totaled $10.2 billion in the year ending in May, according to Panjiva, a global trade research firm. Despite this being quickly reversed, the decision ignited a protest movement against socialist President Nicolas Maduro.

Philippines: Mayor Killed During Police Raid
The mayor of Ozamis and six others were killed early Sunday in police raids at private residences, according to media reports. Duterte says he plans to confront mayors linked to illegal drugs, warning that they should resign or face death .

CenterPoint, Authorities Investigating NatGas Explosion at Minneapolis School
Some students in the academy's summer program were on campus at the time of the explosion, but none of them were hurt. The state fire marshal will likely take the lead, he says, but Minneapolis fire and other agencies may be involved.