US Facilities · Automotive
Toyota and Mazda to build $1.6 billion joint US assembly plant
- Company
- Toyota Motor and Mazda Motor (Toyota City, Aichi and Hiroshima)
- Project
- Toyota–Mazda joint venture assembly plant, Huntsville, Alabama (site chosen in January 2018)
- Value
- $1.6B; up to 4,000 jobs
- Status
- Announced on August 4, 2017; the site was chosen in January 2018.
- Date
- 2017-08-04
Toyota and Mazda said they would build a $1.6 billion joint assembly plant in the US, funded equally, with up to 4,000 jobs. The site was not yet chosen; Huntsville, Alabama was picked in January 2018. As part of a wider tie-up, Toyota also took a ¥50 billion stake in Mazda.
Why it matters
The plant lets both carmakers add US production while sharing the cost, as pressure grew to build more vehicles in the US.
The plant
The plant was planned to build 300,000 vehicles a year, split between crossover SUVs for Mazda and Corolla sedans for Toyota, and to start operating in 2021, with about 4,000 workers.
The wider alliance
Alongside the plant, Toyota took a 5% stake in Mazda and Mazda took a 0.25% stake in Toyota. The two companies also agreed to develop electric vehicle technology together and share the cost, and to cooperate on in-car information technology and automated driving.
Sources
Kakehashi M&A News home
