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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 CX-5 updates bring nav to more trim levels

The refreshed 2016 Mazda CX-5 is already one of our favorite crossovers of its size for the model's engaging driving experience, upscale interior, and slick infotainment system. For a new 2016.5 model year upgrade that arrives in January, Mazda gives customers even more standard features to enjoy, but prices also tick upward. The Japanese automaker just gave the 2016 CX-5 light upgrades like LED signature lights and an update to the Mazda Connect infotainment system. The 2016.5 updates add a backup camera on every version except for the base front-wheel drive Sport with the six-speed manual. For buyers considering higher trims, all Touring and Grand Touring models get the welcome inclusion of standard navigation, and the Touring now comes with heated front seats, too. The extra tech comes with a jump in cost. As of Dec. 15 Mazda increases its delivery and destination charge from $820 to $900 for crossovers and $835 for cars. The change brings the base price of the front-wheel drive 2016.5 CX-5 with a manual gearbox to $22,695, and the top-spec all-wheel drive Grand Touring now retails for $30,770. 2016.5 Mazda CX-5 Adds More Standard Features to Best-Selling Compact Crossover - Backup Camera Now Standard on Most Trim Levels, Navigation Added to CX-5 Touring and Grand Touring - IRVINE, Calif., Dec. 18, 2015 /PRNewswire/ -- Just in time for Christmas, Mazda North American Operations (MNAO) has announced pricing and packaging for the 2016.5 Mazda CX-5 compact crossover, adding value and reducing complexity in CX-5's trim level structure. 2016.5 Mazda CX-5 Adds More Standard Features to Best-Selling Compact Crossover New for the mid-model year, a backup camera is now standard on all trim levels equipped with Mazda's SKYACTIV-Drive six-speed automatic transmission. CX-5 Touring models gain standard navigation and heated front seats. CX-5 Grand Touring models also add navigation as standard equipment. "The added content in 2016.5 CX-5 reflects our customers' tastes toward premium features in a compelling, fun-to-drive, stylish crossover," said Robert Davis, Senior VP of U.S. Operations, MNAO. "CX-5 buyers are educated, upwardly mobile, active-lifestyle individuals. With these updates, we aim to provide them with an even greater ownership experience." Previously, CX-5's backup camera was part of the Rear View Camera Package on the CX-5 Sport trim level. Navigation was available in the CX-5 Touring and Grand Touring Technology Packages.

California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle