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Toyota, Mazda plan capital tie-up, prepare for EV race

Reuters

Toyoda denied that Trump's views influenced his decision.

Trump's tweets were sent hours before the Labor Department is set to release its monthly jobs report, and the morning after the president held a campaign-style rally in West Virginia, during which he said that "there were no Russians in our campaign".

On August 4, Toyota and Mazda announced plans to strengthen their ongoing partnership by investing $1.6bn in a new USA assembly plant, as well as sharing research into electric vehicles. "Because of its strong dependence on North American market, Mazda absolutely needs to expand its manufacturing footprint here".

The big news is the announcement of a $1.6 billion plant for the United States.

Toyota spokesman Scott Vazin said the company would also continue to make the Corolla at its MS manufacturing plant, with no changes planned there.

As part of the plan, the pair will build a new factory in the USA and develop new electric vehicles and connected auto and autonomous driving systems. Mazda will take a 0.25 percent share of its larger rival.

With growing competition from tech giants in the auto industry like Alphabet's Waymo, Apple, and Amazon, traditional automakers are now turning to commodities. "That's why I feel it has become increasingly important for us automakers to gather new partners without seeing things in confrontational perspectives".

"It has also sparked Toyota's competitive spirit, increasing our sense of not wanting to be bested by Mazda".

Mazda had previously operated with Ford Motor Co.in a joint venture in the U.S. Toyota has worked with Subaru and others. The company's vast success and influence gives its management the feeling that it's obliged to help its compatriots, particularly the relative minnows, strengthening the Japanese vehicle industry as a whole in the process.

In 2010, Toyota agreed to provide hybrid-car technology to Mazda.

All Corollas now sold in the US are made in Ontario, Canada or Mississippi.

"Toyota and Mazda have been working more closely together, so it is no surprise they will have a plant together", Autotrader.com analyst Michelle Krebs said, adding that Mazda had been searching for USA manufacturing capacity. "A great investment in American manufacturing!".

Mazda President Masamichi Kogai said he hoped that the partnership will help energize the industry. "So this is an easy marriage for both parties".