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Toyota, Mazda partner to build EVs at new $1.6 billion U.S. plant

TOKYO — Toyota and Mazda plan to build a $1.6 billion U.S. assembly plant, the two said on Friday, as part of an alliance that will also see the Japanese automakers jointly develop electric vehicle technologies. The two will take small stakes in each other as part of the tie-up: Toyota, the world's second-largest automaker by vehicle sales last year, will take a 5 percent share of Mazda, extending its dominance in Japan's auto sector. Mazda will take a 0.25 percent share of its larger rival. The plant, something of a surprise at a time of overcapacity in the U.S. market, will be a boost to U.S. President Donald Trump, who campaigned on promises to increase manufacturing and expand employment for American autoworkers. The plant will be capable of producing 300,000 vehicles a year, with production divided between the two automakers, and employ about 4,000 people. It will start operating in 2021. The electric vehicles cooperation, meanwhile, comes as the tightening of global emissions regulations prompts more automakers to develop battery powered cars, as the industry struggles with hefty research costs and intense competition from technology companies over technology like self-driving cars. As part of the agreement, Toyota and Mazda will also work together to develop in-car information technologies and automated driving functions. Toyota, Japan's biggest auto company, has been forging alliances with smaller Japanese rivals for several years, effectively engineering a loose consolidation of the Japanese auto sector. It already owns a 16.5 percent stake in Subaru, Japan's No. 6 automaker, with which it also has a development partnership. Toyota is also courting compact car maker Suzuki to cooperate on R&D and parts supply as Toyota seeks to tap its smaller rival's expertise in emerging Asian markets. A stake in Mazda may also prevent future incursions by tech companies, one analyst said. "For a technology company which lacks the expertise in making cars, Mazda could look like a very interesting acquisition. They're very good, they're not too expensive. Maybe Toyota realizes this," CLSA managing director Chris Richter said. "By buying a 5 percent stake, Toyota takes Mazda off the table rather than having it sit out there like a free agent which could someday be used against them." COROLLA PRODUCTION SHIFT Mazda stands to gain from a deal that gives the small automaker a production foothold in the United States.

Mazda CEO predicts record US sales in next 2 years

The recently appointed CEO of Mazda is apparently quite the optimist, claiming that the Japanese brand, renowned for its Zoom-Zoom driving character (and more recently its sleek, refined designs and Skyactiv efficiency), is claiming the company will record its best-ever US sales within the next two years. According to a report from Automotive News, Masamichi Kogai expects Mazda to move 400,000 of its Kodo-styled vehicles in the increasingly competitive US market by March 2016, with the recently launched Mazda3 leading the charge. "It will impacted considerably by the trend of the U.S. industry. But... it's my hope we achieve the record by that time," Kogai tells AN.
The brand is currently targeting 300,000 units by the end of this fiscal year in March 2014. Given that production and sales of the Mazda3 (and consumer awareness of the 2014 Mazda6) is still picking up steam, it isn't a stretch to imagine Mazda, which sold 240,000 vehicles from January to October of 2013, hitting its target.
Along with the overall increase in sales numbers, Kogai is expecting the independent brand to take an even larger slice of the US sales pie, claiming 2.5 percent US market share, improving from its current 1.9-percent foothold so far in 2013. "I think the upper limit may be 2.5 percent for the time being," Kogai told AN, before pointing out, "We don't want to use a lot of incentives. That is not the sales approach we aspire toward."

Will Mazda show the next Miata's chassis in NY?

Mazda is being very sneaky about what it is bringing to the New York Auto Show, and it might have something to do with the next-generation MX-5 Miata. Australian website Motoring.com.au spoke to a company insider who told it that at least the chassis for the roadster would debut in Manhattan. The rumor goes that the show will act as the kickoff for the PR campaign for the new model.
We contacted Mazda USA PR Director Jeremy Barnes to find out more, and he would neither confirm nor deny the rumor. "Just because you read it on the Internet doesn't mean you should repeat it," he said to Autoblog. That's not exactly an outright, No.
Supporting evidence that the new drop top might be appearing in the Big Apple includes Mazda's plan to celebrate the model's 25th anniversary at the show. It's bringing 15 cars from the first three generations to display. "It will be absolutely worth attending the New York Auto Show if you're a Miata fan," Barnes said. That at least hints that there might be something he's not telling us. Otherwise it's a lot of sizzle without much steak.