Toyota and Mazda are joining forces to construct a new $1.6 billion assembly plant in the United States.
The plant’s location is yet to be determined, but it’s said provide work for up to 4,000 employees and will have an annual production capacity of 300,000 units a year. The two Japanese automakers hope to have the plant operational by 2021.
The assembly site is just part of the Toyota/Mazda joint venture, with the two companies also partnering on the research and development of electric vehicles and connected car technologies. The move has been well-received by investors as it reduces the risks involved for both companies – important amid falling automotive sales both in the U.S. and abroad.
In addition to developing electric car and connected car technologies, Toyota and Mazda will also work together on future car safety features. Additionally, the two brands will expand the number of shared models between them. Mazda currently supplies Toyota with the Mazda2, which is sold as the Toyota iA, and the two plan to “explore the possibilities of other complementary products on a global level,” going forward.
“The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars,” Toyota president Akio Toyoda said. “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.”