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Toyota and Mazda in talks to build joint US auto plant

UPDATE: The Toyota-Mazda deal has been announced. A newer version of this story appears here. Toyota Motor Corp and rival Mazda Motor Corp are expected to announce plans on Friday to launch a joint venture and build a new U.S. assembly plant, a person briefed on the matter said. A new auto plant would be a major boost to U.S. President Donald Trump, who campaigned on promises to boost manufacturing and expand employment for American autoworkers. Japan's Nikkei reported on Thursday that Toyota would take a roughly five-percent stake in Mazda Motor Corp to develop key electric vehicle technologies and jointly build a factory in the United States. The deal could be announced as soon as Friday, the newspaper said. The person briefed on the matter, who was not authorized to speak to the media and requested anonymity, confirmed the Japanese carmakers were planning to build a large plant in a yet to be determined U.S. location and planned future joint efforts on electric vehicles. The same source declined to offer further details, however. Toyota, in a statement, said the two companies have been exploring various areas of collaboration under a May 2015 agreement. "We intend to submit a proposal to our board of directors today regarding the partnership with Mazda, however, we would like to refrain from providing further comment at this time," Toyota said in a statement issued by its U.S. operations. Mazda said in statement that "nothing has been decided yet" and added the company "will have a board meeting on this matter today. We cannot comment any further." Toyota, the world's second-largest automaker by vehicle sales in 2016 and Japan's dominant car company, has been forging alliances with smaller Japanese rivals for several years, effectively consolidating the Japanese auto sector. A new U.S. assembly plant would likely become the prize in a fierce competition among Midwestern and Southern states eager to expand manufacturing jobs. Trump in January criticized Toyota for importing cars to the United States from Mexico. The Republican president also threatened to impose a hefty fee on Toyota if it were to build its Corolla cars for the U.S. market at a plant in Mexico. "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump said in a post on Twitter. But since January, Trump has praised Toyota for its U.S. investments.

Mazda's slick new CX-4 crossover is sadly only for China

Mazda just unveiled the CX-4 crossover at the Beijing Motor Show, introducing the sleek new crossover exclusively for the Chinese market. The CX-4 rides on the same wheelbase as the CX-5, and is just as wide. It even packs the same powertrain options: 2.0- or 2.5-liter inline fours from Mazda's Skyactiv-G series, mated to the same six-speed manual or automatic transmissions. It measures a little longer from bow to stern than the CX-5 (albeit shorter than the CX-7), but the key part here is that it's shorter in height – shorter even than the smaller CX-3 – thanks to its sleek coupe-like roofline. The resulting impediment to interior space may make little sense from a practical standpoint, but it sure does make it look good. Consider the CX-4, then, to bear a similar relationship to the CX-5 as the BMW X4 does to the X3, or the Coupe versions of the Mercedes GLC and GLE to their conventional counterparts – albeit with styling more similar to the Infiniti QX70, particularly at the back. The question is whether the US market is ready for a more budget-oriented five-door crossover coupe in the same way that it has embraced those more upscale offerings. Mazda doesn't seem to think so; at least not for the time being. For our part, looking at the CX-4, we're not so sure. What do you think? Related Video: Mazda Unleashes New Mazda CX-4 Crossover SUV - On display now at the Beijing Motor Show, sales in China start in June - HIROSHIMA, Japan—Mazda Motor Corporation has unveiled a new crossover SUV, the Mazda CX-4, at the Beijing Motor Show (Auto China 2016).*1 The latest edition to Mazda's new-generation lineup adopts SKYACTIV TECHNOLOGY and KODO—Soul of Motion design throughout and goes on sale in China in June. The CX-4 was made to exceed existing categories and stereotypes. The dynamic design is unmistakably KODO in form and the planted stance and sleek, coupe-like cabin combine to give the model an outstanding presence. Customers will appreciate the exceptional functionality and user-friendliness, including the ease of entering and exiting the vehicle and the flexible cargo space. With SUV-like ground clearance and Mazda's i-ACTIV AWD*2 all-wheel drive system, the CX-4 is ready to take on a wide range of road conditions and offers a combination of outstanding environmental and safety performance (Sustainable Zoom-Zoom) and a Jinba-ittai driving feel with excellent handling thanks to its low center of gravity.

Mazda's new Mexican plant capacity rises to 230,000

After the turmoil of last year, 2013 is getting off to a much better start for Mazda. The company has issued a release indicating that the forthcoming plant in Salamanca, Mexico has had its production capacity raised even though it isn't scheduled to go online until March 2014. The original plans called for a 140,000-unit capacity, 90,000 of that allotted for the Mazda2 and Mazda3, the remaining 50,000 for a small car Mazda would build for Toyota that would be based on the Mazda2. The new plans call for raising that by 90,000 units to a total of 230,000 units within two years, by the end of March 2016, and it looks like it will all go toward Mazda production to satisfy growing demand for Skyactiv vehciles. The Mexican plant's opening will be the return of Mazda manufacturing to North America, after Mazda6 production was moved back to Japan last year.
More good news for the company is that it projects 10 billion yen ($114 million) in net income for the financial year that will end in March. That would be a welcome turnaround from the 100-billion-yen loss in the previous financial year, part of a series of three annual losses in a four-year span.
You'll find the press release with the factory update below.