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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.

2015 Toyota Sienna goes overboard to promote a SpongeBob movie

Good marketing is a huge portion of making a film successful, and Toyota and Nickelodeon are going overboard to promote the upcoming SpongeBob Movie: Sponge Out of Water with this custom 2015 Sienna inspired by the cartoon character at the Los Angeles Auto Show. The exterior is decorated to look just like SpongeBob, but his maniacally smiling face on the hood and windshield might be pure, uncut nightmare fuel for a segment of the child population. The ring on the roof actually blows bubbles too, and the look gets finished off with matching blue and yellow wheels. If you get past SpongeBob's crazed expression and take a peek inside, you find even more cartoon cues. Each of the seats is upholstered to evoke the shows stars, and all of the trim has nautical inspiration as filtered through the series' animation style. The floor is a sandy beige, blue wood trim runs over the dashboard and sides and the roof has airbrushed clouds. Of course, it's hard not to miss a ship's wheel that replaces the usual steering wheel. While it's certainly bizarre, kids might dig the bright colors, while their parents check out the Sienna. The van's also going on a cross-country promotional tour to advertise the movie ahead of its February 6 release. Scroll down for all of the info about this cartoon car. Nickelodeon and Toyota Partner to Create 2015 Toyota Sienna Inspired by the SpongeBob Movie: Sponge Out of Water Three-Dimensional SpongeBob Concept Car to Take Families on an All-Wheel Drive Adventure Promotional Tour Leading Up to Feature Film's Feb. 6, 2015 Premiere November 18, 2014 NEW YORK – Nov. 18, 2014 – Nickelodeon and Toyota have partnered to transform everyone's porous pal into a new 3-D concept car based on Paramount Pictures and Nickelodeon Movies' upcoming film, The SpongeBob Movie: Sponge Out of Water. The SpongeBob Movie 2015 Toyota Sienna features a custom three-dimensional SpongeBob SquarePants exterior, complete with the character's Superhero Incredibubble mask that blows real bubbles at the top of the car. The interior features seating inspired by each of SpongeBob's Bikini Bottom pals, along with a wood-grain dashboard, a custom Captain's steering wheel, a blue-sky head liner and a sand-inspired floor. The one-of-a-kind vehicle will be unveiled on Nov. 18 at the LA Auto Show and will then roll out on a cross-country promotional tour leading up to The SpongeBob Movie's Feb. 6, 2015 premiere.

The ugly economics of green vehicles

It's fair to say that most consumers would prefer a green vehicle, one that has a lower impact on the environment and goes easy on costly fuel (in all senses of the term). The problem is that most people can't – or won't – pay the price premium or put up with the compromises today's green cars demand. We're not all "cashed-up greenies." In 2013, the average selling price of a new vehicle was $32,086. The truth is that most Americans can't afford a new car, green or not. In 2013, the average selling price of a new vehicle was $32,086. According to a recent Federal Reserve study, the median income for American families was $46,700 in 2013, a five-percent decline from $49,000 in 2010. While $32,000 for a car may not sound like a lot to some, it's about $630 a month financing for 48 months, assuming the buyer can come up with a $6,400 down payment. And that doesn't include gas, insurance, taxes, maintenance and all the rest. It's no wonder that a recent study showed that the average family could afford a new car in only one of 25 major US cities. AutoTrader conducted a recent survey of 1,900 millennials (those born between 1980 and 2000) about their new and used car buying habits. Isabelle Helms, AutoTrader's vice president of research, said millennials are "big on small" vehicles, which tend to be more affordable. Millennials also yearn for alternative-powered vehicles, but "they generally can't afford them." When it comes to the actual behavior of consumers, the operative word is "affordable," not "green." In 2012, US new car sales rose to 14.5 million. But according to Manheim Research, at 40.5 million units, used car sales were almost three times as great. While the days of the smoke-belching beater are mostly gone, it's a safe bet that the used cars are far less green in terms of gas mileage, emissions, new technology, etc., than new ones. Who Pays the Freight? Green cars, particularly alternative-fuel green cars, cost more than their conventional gas-powered siblings. A previous article discussed how escalating costs and limited utility drove me away from leasing a hydrogen fuel cell-powered Hyundai Tucson, which at $50,000, was nearly twice the cost of the equivalent gas-powered version. In Hyundai's defense, it's fair to ask who should pay the costs of developing and implementing new technology vehicles and the infrastructure to support them.