Tie-up will involve Japanese firms partnering on new technology and a £1.22 billion factory in the US
James Attwood, digital editor
4 August 2017

Toyota and Mazda have agreed a business alliance that will involve the two Japanese firms working together to develop new technology, including electric vehicles (EVs).

The agreement expands upon a technology partnership the companies signed in 2015. Under the new deal, each firm will take a share in the other worth ¥50 billion (£345 million). This gives Toyota a 5.05% stake in Mazda and Mazda a 0.25% share in Toyota.

The alliance will involve the two firms working together to “explore joint technologies” for the development of EVs, along with infotainment, connected car systems and advanced safety technology.

The firms could also supply each other with more badge-engineered models. Toyota currently sells a version of the Mazda 2 rebranded as the Yaris iA in North America, and under the new deal, Toyota will supply a box truck to Mazda for the Japanese market.

The two firms are also planning a joint venture to build a shared $1.6bn (£1.22bn) factory in the US with the capacity to produce 300,000 cars per year. A site for the plant, which will employ around 4000 people and is intended to be operational by 2021, has yet to be decided.

Toyota president Akio Toyoda said: “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars.

"This is a partnership in which those who are passionate about cars will work together to make even better cars. It is also the realisation of our desire to never let cars become commodities.”

Read more

Toyota EV company launched to develop electric vehicles

Toyota electric Concept-I demonstrates artificial intelligence

Mazda to launch electrified cars from 2021

Toyota i-TRIL previews autonomous electric city car


Our Verdict

Fourth-generation Toyota Prius

The reborn Toyota Prius may be the world’s most popular hybrid, but it faces stiffening competition from Hyundai, Volkswagen and Audi

Join the debate


4 August 2017

I sometimes wonder what EV Toyota would selling now if hadn’t pursued the failed concept Hydrogen Mirrai and gone down the route of Nissan, Renault etc.

They had so much knowledge of electric propulsion yet wasted that ‘headstart’, I understand it’s not going to be until 2020 before they’ve a ‘from the ground up practical’ EV in answer to the Leaf, Zoe or Bolt etc.

Did they not wonder what BMW were going to do with the Battery Tech that they gave them in exchange for Diesel tech. Good swap that was, NOT

typos1 - Just can’t respect opinion

4 August 2017


Funny though, what goes around, comes around. The japanese, whith their mindset and actions of removing any wastes, continuos change, for the sake of change (they call improvement with no end) got to a no end: if it isn`t premium, why should people waste money in something brand new: hence Dacia is doing so well and premium brands never end sky rocketing sales.

People on a budget, buy no frills cars: Dacia, Kia, Skoda, among others. People that do not need to count all beans (or take that for a later timming), buy premium when new or premium when used (fleet cars, CPOs, ....)

As always, the midle shrinks, hence some brands find difficult to keep afloat: Subaru, Mazda, Suzuki, Fiat, Lancia, Vauxhall, Toyota ...

This same Toyota boasts desire to never let cars become commodities, but you have all your life done the comple opposite!! Your Lexus brand is the personification of it!

What is an LS next to a Rolls-Royce Ghost? Or next to a Mercedes-Maybach? is the white-man-van commodity


5 August 2017
Is there a chance that this cooperation on technology and mutual stock holding could lead to a merger in future? Car makers need to pool their resources for the upcoming challenges. Those that embrace this change will survive and thrive. Mergers also appears to be the quickest route to becoming the world's best selling car maker.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • First Drive
    21 March 2018
    The new Vantage has been developed as a Porsche 911 beater, and our first taste on UK roads suggests it can live up to that bold claim
  • Nissan Leaf Tekna
    The is the new Nissan Leaf
    First Drive
    21 March 2018
    The new version of the world's best-selling electric car gains a bigger battery and more power. How does it compare to rivals such as the Volkswagen e-Golf?
  • Range Rover p400e
    First Drive
    20 March 2018
    The original luxury SUV is now available as a plug-in hybrid, promising lower emissions and the capacity for silent electric motoring
  • BMW i3s
    Car review
    20 March 2018
    Revised hatchback sets out its range-extended electric stall in a new, sportier tune
  • BMW X2
    This is the new BMW X2
    First Drive
    20 March 2018
    Doesn’t deliver many typical crossover selling points but looks perky, handles keenly and is well capable of winning over your latent cynic