Japanese auto giants Toyota Motor and Mazda Motor penned a deal to enter a business and capital alliance, aiming to further strengthen their existing partnership.
The agreement serves as a strong testimony to the two-year long optimistic relationship that the two companies have shared, when it comes to collaborative and deliberate discussions.
The auto makers agreed to setup a joint venture that produces vehicles in the United States. They also agreed to jointly develop technologies for electric vehicles, apart from making a decision pertaining to jointly develop connected-car technology.
The companies will also collaborate on advanced safety technologies and expand the supply of complementary products.
On the agreement, Toyota President Akio Toyoda said: “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. 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.”
In 2015, Toyota and Mazda had signed an agreement to solidify a continuous partnership that would have mutually benefited the companies in such forms as strengthening the resources of both companies and helping in the improving each other’s products. It also sought to improve technologies towards the objective of making more number of attractive cars.
Mazda’s President and CEO Masamichi Kogai said: “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 leaders.”
As part of the agreement, both the companies have agreed to explore the possibility of establishing a joint venture plant in the United States by contributing equal funds. If that does happen, the plant would boast of an estimated annual production capacity of around 300,000 units
Mazda and Toyota will commence the examination of detailed plans with the objective of starting operations of the new plant in 2021. The plant is likely to consume a total investment of around $ 1.6 billion and is likely to increase the availability of jobs by an estimated number of 4,000.
At the new proposed plant, Mazda expects to produce cross-over models that it will soon roll out to the market in North America. Toyota also though, plans to produce the Corolla for the North American market.
With the demand and expectations for electric vehicles now quickly on the rise, Toyota and Mazda are to explore joint development of technologies for the basic structure of competitive electric vehicles, mobilizing and exchanging expertise freely and in a more active manner.
The companies will work together to develop technologies for onboard multimedia infotainment systems for increased use of in-car information technologies and the increasing demand for similar technologies. Toyota will also cooperate with Mazda in it’s vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies as it aims to create a mobile society devoid of accidents.
Toyota is supposed to supply a compact commercial “two-box” van to Mazda in Japan. Mazda is already supplying a compact sedan of its to Toyota in North America. And. Apart from this, the companies will further explore the possibilities of other complementary products on a global level.