Toyota and Mazda to Build $1.6 Billion Factory in the US
- Author: Wendy Palmer Aug 05, 2017,
Aug 05, 2017, 0:22
In addition to the new factory in the US, the automakers said they would collaborate on safety and technology for electric vehicles.
A new Toyota assembly plant will provide 4,000 new jobs as part of a $10 billion investment in the U.S. over the next five years, according to the Japanese automaker.
Lentz said that the proposed plant would build about 300,000 cars - 150,000 crossover sport utility vehicles for Mazda and 150,000 Toyota Corollas.
Toyota had meant to build Corollas - the world's best-selling vehicle - at the plant in Mexico. Back in January, Trump threatened Toyota with hefty border taxes in response to its proposal to build a plant in Baja, Mexico.
When revealing the 2018 Toyota Camry at the Detroit auto show, Toyota touted several graphics on the screen behind the new, shiny cars. At the moment, Mazda ships all vehicles sold in the USA from plants in Japan and Mexico.
Toyota has fallen to third place in global sales in the first six months of this year, behind Germany's Volkswagen group, with the Renault-Nissan alliance becoming the world's top auto seller for the first time after its addition of Mitsubishi Motors Corp.
President Trump has made it a priority to push foreign automobile companies to set-up in the U.S.
Meanwhile, Mazda, which has developed its original fuel-saving technology, has been behind in the field of electric vehicles.
Toyota, Japan's biggest carmaker, has been forging alliances with smaller Japanese rivals for several years.
However, the companies did not announce a location for the plant, according to multiple reports.
The union has struggled to expand beyond its stronghold at Detroit automakers to foreign-owned plants, especially in the southern US. It is expected to create up to 4,000 jobs.
Japan's largest carmaker is mulling taking a roughly 5 percent stake in Mazda, while Mazda may also invest in Toyota, 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.