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Toyota will build new SUV at Alabama plant it's building with Mazda

WASHINGTON — Toyota Motor Corp said Wednesday it will build a new sport utility vehicle at its $1.6 billion joint venture assembly plant in Alabama rather than produce Corolla cars. The largest Japanese automaker announced in January 2018 it would build the factory in Alabama in a joint venture with Mazda. Toyota said the shift is due to "a growing consumer appetite for light trucks and SUVs." Mazda announced in February 2019 that it would build a new SUV at the plant. Toyota said it still expects the plan to start production in 2021. Construction remains on schedule, and hiring has begun. The plant could create up to 4,000 new jobs and build 300,000 vehicles annually. Corolla production will remain at Toyota's plant in Blue Springs, Miss.

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 working on lithium-ion batteries to replace lead-acid starter batteries

In the quest for ever better fuel economy, car companies are looking for every single advantage possible, no matter how small. This is evident in everything from active grille shutters to the 48-volt mild-hybrid electric assist systems like that in the new Ram 1500. For Mazda, the latest target for potential efficiency gains is the lowly 12-volt starter battery. The company announced that it is partnering with two other companies, ELIIY Power and Ube Industries, to develop a lithium-ion starter battery that would be used on mainstream models in place of conventional lead-acid units. Mazda plans to have them ready for use by 2021. The advantage here would be that 12-volt lithium-ion batteries would be much smaller and lighter than the lead-acid ones they replace. And lighter cars don't need as much fuel to move around. Plus, as an added benefit, making cars lighter also often makes them faster and better handling. This is why companies such as Lotus and Porsche have offered optional lithium-ion 12-volt batteries for some lightweight sports cars. A potential downside to the use of these batteries is increased cost. Lead-acid batteries from your local parts store will run you between $100 to $150. AGM batteries could be between $200 and $300. As for lithium-ion batteries, Lotus introduced the option on the Evora 400 in 2016, and the option cost $1,690. Odds are that a company such as Mazda won't be absorbing all those costs, meaning that the cost of these future Mazdas could increase with a change from lead-acid to lithium ion. Related Video: