EV joint venture by Toyota and Mazda

A joint venture to develop EV and connected-car technologies has been agreed between
Japanese automakers Toyota and Mazda.

The pair announced plans to take a stake in each other and extend their work together on shared models and production, including the construction of a plant in the United States and electric vehicle development.

Toyota will take a 5% stake in Mazda and Mazda a 0.25% stake in Toyota.

They already work together, sharing a small car based on the Mazda2/Demio in the US. The new plant will build the Corolla, and an as yet confirmed Mazda SUV. The facility can produce 300,000 vehicles a year.

The companies will also cooperate on electric vehicles. Analysts have speculated Toyota took the stake in Mazda to ‘take them off the table’ of having a tech company purchase them to base an entry into the electric and autonomous car market in the future.

Mazda has said in the past that it lacks the funds to develop electric cars on its own, a view shared by Subaru and Suzuki, who also have deals with Toyota.

Toyota established an electric vehicle division last year, with plans for all its vehicles to be zero emissions by 2050.

Mazda president Masamichi Kogai predicts the partnership will help energise the industry.
Analysts are expecting more partnerships between automakers.