Toyota, Mazda announce tie-up over electric vehicles, U.S. factory

Reuters

Reuters

The two groups confirmed the purchase, and said they would combine to invest in a US plant under a cooperation agreement the two groups first revealed in May 2015.

Both Japanese automakers will take small amount of stakes in each other as part of the link up.

Volkswagen AG (VOWG_p.DE) opened the last new USA assembly plant in 2011 in Tennessee to build new cars after getting almost $600 million in tax incentives. Earlier today, they signed an agreement to create what they're calling "a business and capital alliance". Read on as we explain what it's all about. The two companies will work together to develop electric vehicle technology, according to the filing.

The limited tie-up with Mazda marks the latest addition to Toyota's sprawling empire, which includes Japanese truck maker Hino Motors and minicar maker Daihatsu Motor Co.

London 2017 | We must protect Jamaican athletics, says Wilson
The Jamaican has struggled for form most of this season but in Monaco ran his fastest time of the year, 9.95. His biggest challenger, Andre De Grasse of Canada, pulled out of the worlds because of a hamstring injury.

However it's not only electric cars that will benefit from the partnership.

Infotainment and safety tech is another area of focus for the venture. Expect to see more vehicle-to-vehicle and vehicle-to-infrastructure systems developed, too. He had threatened Toyota and other auto companies for selling cars to American customers that were built elsewhere.

A share of Mazda might also prevent incursions in the future by tech companies, said one industry analyst on Friday.

The Corolla will be located at the new factory in the USA, which will be established as a joint venture between Toyota and Mazda and will open by 2021.

WWE and Eva Marie announce her departure
You never know, I could show up on a Monday Night Raw, I could come down to SmackDown Live and snatch that title real quick. During her time in the WWE , Eva Marie was widely criticized by fans for her lack of in-ring talent.

The US plant will have the capacity to produce approximately 300,000 vehicles a year and create up to 4,000 jobs. At Toyota's new plant in Guanajuato, Mexico, which is now under construction, Toyota plans to produce the Tacoma, instead of the Corolla. But the automaker in 2013 opted to build a plant for its luxury Audi unit in Mexico instead of in the United States. Demand rose in North America, Europe, Central and South America, Africa and the Middle East. Sales also rose in Toyota's home market, Japan, but they fell in the rest of Asia. The Mazda CX-3, CX-5 and CX-9 are already on sale in the USA, so this could be one of Mazda's upcoming coupe-SUV models.

Volvo Cars, a Swedish brand owned by China's Geely Automobile Holdings Ltd [0175.HK] [GEELY.UL] will open a $500 million USA assembly plant next year in SC.

President Donald Trump had criticized Toyota for taking auto production and jobs to Mexico.

Controversial new Venezuelan assembly inaugurated in Caracas
Earlier, the Vatican urged the Venezuelan government to "avoid or suspend" its new legislative superbody. She also ordered prosecutors to investigate the allegations of election tampering.

Latest News