Sometimes rivals, sometimes partners, it all depends on the purpose. The latest reports say that another statement is true this time since Toyota and Mazda could build joint electric vehicle plant in the US. When it is the largest market in the world, there is no doubt any boost is helpful.
Now, the two Japanese companies are taking an agreement signed in 2015 to another level. To be present in US soil, both must meet high criteria. Additionally, there are some other obstacles, which come directly from the most powerful man in the world – the US president himself.
Toyota And Mazda Contract
They could be rivals, but it is no secret that two companies are together in electric department. This need leads to a tighter cooperation. This evolute that Toyota and Mazda could build joint electric vehicle plant in the US. And now, it is happening. After many rumors and reports alarming entire industry about this deal, now it is official. The factory in the USA will help both carmakers avoid possible problems with the administration of Donald Trump. It will cut production cost, and lead to higher profit.
Factory In The US
Everything about the plant is set, and both sides agreed to invest around $1.6 billion for the factory. The high investment shows intentions and expectations of all sides. This plant will employ about 4,000 workers. The plan is to open it during 2021, and from it start, the factory will have a capacity to build over 300,000 per year.
However, where it will be, it is not decided yet. Both companies were present on the US ground, as a part of partnerships with domestic carmakers. Toyota’s partner GM closed its plant in California. Mazda’s cooperation with Ford in Detroit is now dead for 9 years. However, both Japanese manufacturers will clearly benefit from this contract.
Most of the car companies present on US market had ideas about moving production to Mexico. However, the inauguration of the new president, Donald Trump, spoils the plans. From day one in office, Trump insists on protection of American workers, especially in the car industry. Ford couldn’t move its plants to Mexico, because of the cheaper production.
President of the United States threatens with high importing taxes, which is making carmakers turn to other plans. One of the vehicles under president’s fire is Toyota Corolla. Everything was ready for its assembly in Mexico, but now this intention drops to water since Toyota and Mazda build joint electric vehicle plant in the US.
Toyota And Mazda Electric Vehicles
Until 2021 there is a plenty of time. But, next logical question is – what will this plant produce? Electric cars popularity is growing every day. We could hear that Mazda would step into this market in 2019. For that season, we see an electric vehicle with a rotary engine coming into the Japanese and European market. After some upgrades, the same car could head into US salons.
However, it is not impossible that carmaker plans to introduce a new model in cooperation with Toyota. The other manufacturer is already well-known for its plug-in hybrids, especially Prius. This could be a matrix of the future car from these two car industry giants. The electric vehicle plant In US will help them both in offering the best solutions to their fans.