Toyota, Mazda to build $1.6 billion US plant, develop electric cars tech

Toyota, Mazda to build $1.6 billion US plant, develop electric cars tech

Toyota, Mazda to build $1.6 billion US plant, develop electric cars tech

"But that it's come this far means that I don't imagine it'll stop here", said Senior Managing Officer Nobuhiko Murakami, referring to the company's investments into new technology. "We can not comment any further". With the sense of crisis, Mazda chose to approach Toyota.

Within minutes of the first-quarter earnings conference ending, Toyota confirmed it will acquire about a 5 percent stake in Mazda and together they will spend $1.6 billion to build a US auto plant.

"There will be new rivals appearing - Apple, Google - these are IT companies, we also need to compete with them, too", Toyota President Akio Toyoda, grandson of the company's founder, told a news conference in Tokyo. AI research unit. The Japanese company also established a $100 million venture capital business focusing on startup incubation.

"We're going to concentrate only on pickups at the beginning and are studying the potential for SUVs in the future", Lozano said. "There are no nautical charts for us to follow".

Toyota will produce the Corolla model for the North American market, while Mazda will make cross-over models.

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

Two Japanese carmakers won plaudits from President Trump yesterday as they unveiled plans to build a $1.6 billion factory in the United States.

Sales of small cars have slumped in the US amid steadily low gas prices. It tied up with major USA graphics chip producer Nvidia in 2016 through a U.S.

Toyota noted the growing competition from newcomers in the auto industry like Google, Apple and Amazon, stressing he was anxious about autos turning into commodities.

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Purchasing stakes in other companies is not an every day phenomenon at Toyota, which in recent years acquired a minority equity stake in Isuzu Motors Ltd.

According to Zacks, "Mazda Motor Corp. engages in the manufacture and sale of passenger cars, commercial vehicles and automotive parts".

As part of the new partnership, Toyota will be acquiring a 5% stake in Mazda and Mazda will be acquiring a 0.25% stake in Toyota - the disparity in those figures is because Toyota is a much larger firm.

The two companies will consider further strengthening capital tie-up "in line with the progress" of the alliance.

The plant will be capable of producing 300,000 vehicles a year, with production divided between the two automakers, and employ about 4,000 people. Also, since this plant will build the Corolla, it likely will be near Toyota's current Corolla plant in MS to be close to parts supply companies. Even with the improved outlook, the automaker is projecting a second consecutive annual profit decline, which would be a first since 1994.

Toyota has 10 USA plants in eight states in an arc that runs from West Virginia through Kentucky, Indiana, Alabama, Mississippi and Texas. "It is also the realization of our desire to never let cars become commodities".

The automakers plan to produce Toyota Corollas and a new Mazda SUV crossover at the new plant, and the companies said they could eventually build other cars including electric vehicles.

The automaker has yet to realize the full benefits of a revamped manufacturing process, based on using common components that it calls the TNGA for short.

"Given the massive level of competition in the industry, partnerships are no longer a surprise", said Akshay Anand, an executive analyst at Kelley Blue Book.

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