Toyota Motor and Mazda Motor have signed an agreement to establish joint venture (JV) production facility to manufacture vehicles in the US.
The plant will attract an investment of approximately $1.6bn and will be built with equal funding contributions. Upon completion, the factory will have a capacity to produce about 300,000 vehicles per year.
Upon receiving approvals and authorisation by relevant government agencies, the companies will begin to examine detailed plans with the goal to starting operations of the new plant in 2021.
The factory will create approximately 4,000 jobs.
At the new plant, Mazda will produce cross-over models that Mazda will newly introduce to the North American market, and Toyota plans to produce the Corolla for the North American market.
Under the terms of the agreement, companies will collaborate to jointly develop technologies for electric vehicles, jointly develop connected-car technology, collaborate on advanced safety technologies and expand complementary products.
Toyota president Akio Toyoda said: “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda.
“This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities.”
Mazda president and CEO Masamichi Kogai said: “Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders.”