Japanese automakers Toyota Motor Corp. and Mazda Motor Corp. announced they plan to spend $1.6 billion to set up a joint-venture auto manufacturing plant in the U.S., a move that will create up to 4,000 jobs.
The plant will have an annual production capacity of about 300,000 vehicles, and will produce Toyota Corollas for the North American market. Mazda will make cross-over models there that it plans to introduce to that market, both sides said.
The two will also develop technology for electronic vehicles and the connected car, as well as work together on advanced safety technologies and expand complimentary products.
“The auto industry increasingly faces great challenges, including stricter environmental and safety regulations for new vehicles and the entrance of competitors from other industries, as well as the diversification of mobility-related businesses,” the two said in a statement. “With the future of the industry in mind, in addition to leveraging their individual strengths to further improve technologies and reinforce their business foundations, Toyota and Mazda aim to deepen collaboration and achieve sustainable growth through their partnership, rising to face and overcome these pressing challenges.”