Mazda, Toyota Form Alliance to Develop Vehicles, Connected-Car and Safety Technologies
Mazda Motor Corporation and Toyota Motor Corporation have formed a business and capital alliance that will see both car companies produce vehicles and develop various technologies for its products. The alliance is an extension of a partnership initially formed in March 13, 2015 that leveraged the resources of both companies and complemented each other’s products and technologies “toward the goal of making more-appealing cars.”
Based on the new agreement, both companies will: establish a joint venture to produce vehicles in the United States; jointly develop technologies for electric vehicles; jointly develop connected-car technology; collaborate on advanced safety technologies; and expand complementary products.
“Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leader,” said Mazda President and CEO Masamichi Kogai.
For the joint venture plant to produce vehicles in the US, funding contributions are expected to be split equally between the two companies, with a total investment of approximately $1.6 billion and an annual production capacity of around 300,000 units. Expected to be operational by 2021, the new plant will produce Mazda’s crossover models and Toyota’s Corolla for the North American market.
As for the joint development of vehicle technologies, both brands will look into the basic structure of competitive electric vehicles to allow them to respond quickly to regulations and market trends in each country, and into its onboard multimedia infotainment systems for increased use of in-car information technologies and the increasing demand for connected technologies.
“The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars,” said Toyota President Akio Toyoda. “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.”