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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.

This California rally is vintage Japanese car heaven

What's so good about the future? This is what I was thinking when some folks at Mazda invited me and a handful of other journalists to join them on the second-annual Touge California. It's a rally for classic Japanese cars that covers a huge chunk of Southern California's twistier roads, where fans get to test their beloved machines. Oh, and it attracts swarms of admirers with cameras. "It is not a race. It is a vintage touring rally," said Ben Hsu, editor in chief of Japanese Nostalgic Car, and one of the coordinators of the event. "In Japan, touge most definitely refers to racing, whether timed, in touge battles, or drifting antics. Touge California was created to give drivers of Japanese classics a taste, as close as possible, of the types of roads their cars were forged on." Touge California was created to give drivers of Japanese classics a taste, as close as possible, of the types of roads their cars were forged on. We started the day on a mundane stop-and-go freeway drive from Mazda's Irvine headquarters to Escondido, me riding shotgun with my journalist co-driver in a 2016 Miata. But Mazda also brought along three heritage products on this trip – a 1985 RX-7 GSL-SE, a 1978 GLC three-door hatchback, and a 1975 REPU (rotary engined pickup) – serving as reminders of the company's history in the U.S. The group of Mazdas was joined in Escondido by many more Mazdas. And Toyotas, Hondas, Datsuns – so many 240Zs – and the odd Subaru and Mitsubishi. In total, 28 cars were at the start line. "We doubled the field this year, and made the route longer – 200 versus 120 miles," Hsu said. "We separated the cars into two run groups based on speed and a mix of makes and models." I spent the first part of the rally in the Mazda pickup to get a taste of rotary power. It was my first experience behind the wheel of a Wankel-powered vehicle, my first time driving a small Japanese truck from the '70s, and my God that thing has a lot of power. I had a few scares when I had to stand on the brakes, and I found the shift throw's immense length disconcerting – it felt like third gear engaged somewhere in front of the dashboard, with fourth somewhere in the bed. The truck was a great introduction to the rotary, however, and to '70s Japanese cars. Especially in Southern California, old Japanese cars aren't as novel to casual observers as they might be in other parts of the country.

Mazda announces Takata expansion in US to 472k vehicles [UPDATE]

Update: Mazda is revising the total number of vehicles affected by its Takata airbag inflator recall downward to 464,684 units, compared to the original NHTSA documents showing 472,056. According to Mazda Public Affairs Manager Tamara Mlynarczyk to Autoblog, "It is my understanding that Mazda Japan will be submitting a revised Part 573 on Monday that reflects our numbers." The company's official statement on the recall is now included below. Mazda is the latest automaker in the US to officially announce the details of its expanded Takata airbag inflator recall. The company is broadening its campaign to cover a total of 472,056 vehicles. Mazda's airbag inflator recall covers now the front driver's side for the 2003-2008 Mazda6 produced between May 29, 2002, and May 5, 2008, the 2004-2008 Mazda RX-8 from between April 10, 2003, and February 18, 2008, and the 2006-2007 Mazdaspeed6 made between August 4, 2005, and June 29, 2007. Among these three models there are 444,907 units affected. This is an expansion from of the previous total of about 330,000 examples from 2004-2008. The passenger-side airbag of the 2004-2006 B-Series pickup is also being recalled for those with build dates between April 17, 2003, and May 2, 2006. There are 27,149 of these vehicles in need of replacement parts. Takata's airbag inflator recalls have affected 34 million vehicles nationwide from 11 automakers. In a recent hearing before Congress, Takata said it was producing 740,000 replacement kits a month and hoped to grow that to a million. Other suppliers have also started making the parts. Related Video: RECALL Subject : Driver's Frontal Air Bag May Rupture Report Receipt Date: JUN 04, 2015 NHTSA Campaign Number: 15V345000 Component(s): AIR BAGS Potential Number of Units Affected: 444,907 All Products Associated with this Recall Vehicle Make Model Model Year(s) MAZDA MAZDA6 2003-2008 MAZDA MAZDASPEED6 2006-2007 MAZDA RX-8 2004-2008 Details Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2003-2008 Mazda6 vehicles manufactured May 29, 2002, to May 5, 2008, 2004-2008 RX-8 vehicles manufactured April 10, 2003, to February 18, 2008, and 2006-2007 Mazdaspeed6 vehicles manufactured August 4, 2005, to June 29, 2007.