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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 Skyactiv-D racer first diesel to run at Indy in 60 years

While it may not be touting the old "Win on Sunday, sell on Monday" axiom we all know and love, Mazda recognizes that racing can only improve its cars. And so it's no surprise that the Japanese automaker is testing and refining its Skyactiv-D diesel engine by sending it out on various race tracks around the country - notably being the first diesel ever to compete at Daytona and the first to notch a Grand Am win at Road Atlanta.
Next up? Indy. It has been over 60 years since a diesel-powered machine ran at the Indianapolis Motor Speedway, and the Cummins-powered racer that competed in the 1952 Indy 500 with a 6.6-liter inline-six-cylinder oil-burner was a fast and brutal machine that set a new lap record in qualifying leading up to the race. Though that car was withdrawn with turbocharger failure 71 laps in, its diesel powerplant left an indelible impression on the racing community, and that's something Mazda hopes to accomplish once again.
Mazda says that the diesel engine in its race car is pretty darn close to stock - 51 percent stock by parts count, and 63 percent stock by weight - which means the way it performs in competition is at least a somewhat meaningful way to the stock engine's durability in the real world. Check out the image of the Mazda6 Skyactiv-D racer posing alongside the 1952 Cummins above (click to enlarge) and feel free to peruse the press release below for the rest of the details.

Premium design and diesels: Mazda may be the next VW

At the Chicago Auto Show, we had a chance to sit down with Jacob Brown, a Mazda PR representative, and Jacques Flynn, a lead exterior designer at the company, to talk about design and where the company is going. One of the themes of our discussion was the company's desire to move its lineup toward a more premium, upscale feel and image – both in terms of vehicle design and powertrains. We realized the company may be looking to take a page from Volkswagen's American playbook, positioning itself as a prime purveyor of affordable, upscale – and most importantly, fun to drive – automobiles. In the case of design, Flynn talked about how Mazda's KODO design language is going to evolve; that the goal is to simplify and refine the look. We discussed the CX-5 as an example of this evolution. Flynn pointed out that the goal was to add more refinement and simplicity, and showed how Mazda achieved this on the CX-5 by straightening the curves from the previous model to give it more visual length and a more taut shape. The grille also was given more depth and detailing, which isn't simplified per se, but does provide a more premium look. View 9 Photos Mazda's upcoming diesel engines are another piece to Mazda's premium puzzle. The company will finally offer a diesel on the CX-5. While Mazda planned not to use urea-injection, it finally resorted to the system so the engine could both meet performance benchmarks and emissions standards. In addition to the efficiency of the engine, Brown said that diesel engines have a premium nature for buyers. This is due in part to the luxury automakers that mainly offer them in the US, such as BMW and Mercedes-Benz, and to the fact that the technology will add some cost to the product. If all of this sounds familiar, it's because you know these characteristics used to describe Volkswagen: a company known for upscale, affordable cars, providing great driving dynamics – and formerly, for efficient and fun-to-drive TDI diesel engines. While we didn't touch on the driving experience of modern Mazdas in our interview, you can simply look at any of our reviews to see that we generally like what the company builds. The only downside is that we may have to wait a while for some models, and others may never show up here. Brown and Flynn both said that the Mazda2 is unlikely to be offered in the US as anything other than the Toyota Yaris iA, since it's hard to convince people that a subcompact is premium. No surprise there.