Up to 300,000 vehicles will be made each year at the new factory.
[Update] Toyota and Mazda have confirmed the joint venture to build vehicles in the U.S. at a new $1.6 billion USD plant where 4,000 jobs will be created and up to 300,000 cars will be made annually. Mazda will make crossovers to cater the North American market while Toyota will produce the Corolla for the same region. The plant will be operational beginning with 2021.
In addition, the two will work on technologies tailored to EVs and will also combine their efforts to develop advanced safety systems. Moreover, Toyota will supply a commercial two-box van to Mazda in Japan. The two will analyze the prospects of sharing more models.
Lastly, Toyota will acquire a 5.05% share in Mazda while the Zoom-Zoom company will get a 0.25% stake in Toyota.
The press release has been attached below.
In May 2015, Toyota and Mazda inked a deal to establish what was then called a “mutually beneficial long-term partnership” as a result of sharing technologies and through joint manufacturing. Fast forward to present day, Japan’s Nikkei is reporting the two companies have reached an agreement for a new factory in the United States and also to work on electric vehicles.
Toyota is expected to take a 5% share in Mazda to build the factory where up to 300,000 vehicles are going to be made each year. The 50-50 joint venture is expected to focus on building SUVs at the new plant, which will likely to be located somewhere in the southern part of the U.S.
Another source familiar with the matter cited by Reuters says the factory will require an investment of $1.6 billion USD and will be operational in 2021. Approximately 4,000 people are going to be employed at the plant and besides manufacturing an unspecified Mazda SUV, the factory will also build the next-generation Toyota Corolla pictured below.
Speaking of the world’s best-selling car, it should be mentioned Toyota originally announced plans for a new factory in Mexico to build the compact sedan back in 2015. Work on the plant has commenced and it’s set to be located in the Bajio region where Toyota is already making pickup trucks at another assembly facility. The new one will be operational in 2019. It remains to be seen whether the imminent announcement about the U.S. factory will have a direct impact on the Mexican plant where 2,000 workers will be hired.
Details about the tie-up between Toyota and Mazda regarding electrification are not available at this point, but presumably the two will jointly develop technologies and share them to drive down R&D costs and speed up the process.
An official announcement could be made later today, so stay tuned for more details.