The automotive companies’ acquisition game continues, as Toyota and Mazda announced on Friday, August 4, 2017, the formation of a new alliance. The deal will see Toyota Motor Corporation buy a 5% stake in Mazda Motor Corporation, while Mazda will have a smaller 0.25% share of Toyota.
Under the said agreement, the two Japanese automakers will construct a new automotive plant in one of the world’s biggest markets, the United States. The new factory, whose location is still unknown at this time, will have a 300,000 annual vehicle capacity. It will initially build Toyota Corollas and a new Mazda SUV.
Beyond the facility, however, the Toyota-Mazda alliance is poised to undertake Research and Development that will lead to fielding electric vehicles within the near future. With environmental regulations becoming tighter by the year, automakers need to keep up. And with most every other carmaker jockeying for position in the EV race, Toyota hopes that its team up with Mazda (and vice-versa) will pay off handsomely in this regard.
The Toyota-Mazda deal will likewise infuse capital to develop new in-vehicle information technology systems that will aid in making life on the road easier and safer for all. This means further development of connected car and autonomous mobility solutions, among others.
Toyota, the world’s second largest automaker, is known for producing some of the most reliable cars for the Everyman. Mazda, on the other hand, may be smaller in terms of production scale, yet is still capable of building some of the world’s most engaging vehicles—even it is a family-friendly SUV.
The new Toyota-Mazda deal was signed on Friday, August 4 and is scheduled to take effect on October 2 of this year. The U.S. facility is expected to be operational by 2021.