Newspaper article The Daily Yomiuri (Toyko, Japan)

Toyota, Mazda Unveil Capital Tie-Up Plans

Newspaper article The Daily Yomiuri (Toyko, Japan)

Toyota, Mazda Unveil Capital Tie-Up Plans

Article excerpt

Toyota Motor Corp. and Mazda Motor Corp. announced on Friday that they will enter a business and capital alliance to jointly develop electric vehicles.

Toyota will obtain a 5.05 percent stake in Mazda while Mazda will gain a 0.25 percent stake in Toyota.

With environmental regulations being tightened in many countries, competition over the development of vehicles with advanced technology has been increasingly fierce. The two Japanese automakers, which had been contemplating a possible business alliance, judged it necessary to strengthen their partnership.

According to Friday's announcement by the two automakers, they have agreed to explore setting up a joint venture plant in the United States for which the two sides would contribute equal funding. The plant, with an estimated annual production capacity of about 300,000 units, will require a total investment of about 1.6 billion dollars. It is expected to create up to 4,000 jobs.

The companies will begin to examine detailed plans with the goal of starting operations at the new plant in 2021.

The two companies aim to dodge criticism from the administration of U.S. President Donald Trump, which pledges to reduce huge trade deficits by accelerating domestic production and job creation.

The Toyota-Mazda capital tie-up is expected to push forward further the consolidation of automakers into four major groups: Toyota, Germany's Volkswagen, General Motors Co. of the United States, and the alliance of France's Renault SA and Nissan Motor Co.

After China tightened environmental regulations, Britain and France decided to ban sales of diesel and gasoline-powered vehicles by 2040. …

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