Toyota and Mazda will invest $2.3 billion in a new joint factory that will produce crossovers

Toyota и Mazda вложат $2,3 млрд в новый совместный завод, на котором будут выпускать кроссоверы

Toyota and Mazda announced plans to invest $2.3 billion in a new joint plant in Alabama. That’s $830 million more than originally planned in 2018.

In the framework of cooperation the partners will build in the U.S. a new plant with a capacity of 300 thousand cars a year. Mazda wanted to release it on the crossovers, and Toyota – model Corolla for the North American market. But in the summer of 2019, the Toyota changed his mind: he decided to produce crossovers.

In General, the release of two similar in design models in one company is more logical idea than the parallel production of cars and crossover.

We can assume that the Japanese company is now going to release a related model, built on the same platform. Usually in such cases do so because the use of identical components (even if the machines themselves are significantly different visually) significantly reduces the cost of production. In addition, the two companies already have joint experience of badge-engineering: the new generation of the Toyota Yaris for North America is the twin of the Mazda 2.

There is no accurate information about which models will be assembled at the new enterprise. Today, Toyota manufactures in the US, the RAV4 and the Highlander, the Mazda is still no plant in the United States.

Assumptions can be built only on the basis of data about the production capacity of both companies will be able to collect 150 000 cars a year. Coincidentally that’s how much (or rather, 545 154) crossover Mazda CX-5 in 2019 were sold in the United States. While they are imported from Japan.

Work on the construction of the plant will cost the Japanese approximately one and a half times more expensive than originally anticipated. The company said that the increase in investment “due to the perfection of the production line to improve production processes.”

The roof, floor slabs, ducts, fire protection and electrical work on the plant completed by 75-100%.

It is expected that the company will create up to 4,000 new jobs. Already hired 600 employees.