Toyota And Mazda Enter Business And Capital Alliance
OE

Toyota And Mazda Enter Business And Capital Alliance

The signed agreement marks the start of a concrete collaboration aimed at creating new types of value for future mobility and achieving further sustainable growth.

Toyota Motor Corp. and Mazda Motor Corp. have signed an agreement to enter a business and capital alliance, with the aim of further strengthening their lasting partnership.

The two companies say this recent agreement is a testament to the positive result of two years of collaborative and deliberate discussions between the two companies, and they say it is a milestone in the journey to further strengthen and accelerate the partnership in a sustainable way.

Specifically, the companies agreed to: 1) establish a joint venture that produces vehicles in the United States, 2) jointly develop technologies for electric vehicles, 3) jointly develop connected-car technology, 4) collaborate on advanced safety technologies and 5) expand complementary products.

In addition, together with the aim of advancing and strengthening their long-term collaboration, Toyota and Mazda agreed to a capital alliance arrangement that preserves independence and equality for both companies. In the capital tie-up, the two companies have agreed that Toyota will subscribe for and acquire shares to be newly issued by Mazda through a third-party allotment, and at the same time Mazda will subscribe for and acquire third-party allocation shares of treasury stock disposed of by Toyota in the equivalent amount in value to the Mazda shares. The value of the shares mutually acquired by both companies will be equivalent.

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. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities.”

Representing Mazda, President and CEO Masamichi Kogai said, “Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders.”

On May 13, 2015, Toyota and Mazda entered an agreement to build a continuous partnership that would mutually benefit the companies in such forms as leveraging the resources of both companies and complementing each other’s products and technologies toward the goal of making more-appealing cars. Since then, both companies have discussed various areas to explore, based on the principle of building an equal and favorable relationship in the long term.

Over the medium- to long-term, the two companies will build a favorable relationship that respects the autonomy and equality of each party and works toward success with the agreed joint projects. With the aim of creating new types of value for future mobility, they will accelerate and enhance bilateral cooperation as long-term partners and contribute to the development of a sustainable society by exceeding customers’ expectations.

You May Also Like

Vehicle Quality Trending in the Wrong Direction: JD Power

From cupholders and door handles to ADAS features, reported problems are rising at record levels.

The proliferation of technology in today’s vehicles might be coming at a cost.

According to J.D. Power’s 2023 U.S. Initial Quality Study, the number of problems per 100 vehicles (PP100) has gone up by a record 30 PP100 over the past two years – suggesting that quality is taking a backseat to innovation in the auto industry.

Japanese-Brand Automakers in US: $60.4B in Plants, 2.29M Jobs

New data highlights Japanese-brand automakers’ contributions to the U.S. economy and workforce.

Toyota Transforms Alabama Engine Plant with Clean Energy

Toyota, Toyota Tsusho America and Huntsville Utilities announce 168-acre solar project.

IIHS Strengthens Requirements for TOP SAFETY PICK Awards

Only 48 models qualify for 2023 awards thanks to stiffer requirements for headlights and side crash protection.

Magna Wins GM Battery Enclosures Business 

Magna will supply battery enclosures for the all-new 2024 Chevrolet Silverado EV.

Other Posts

Automotive, Mining Sectors to Meet for Battery EV Conference

The 2024 BEV In-Depth conference in Ontario, May 29-30, will explore the EV battery supply chain and zero-emission vehicle advancements.

EV-Batteries-Generic
Toyota, Argonne National Lab Explore Lithium-Ion Battery Recycling

The joint research project seeks to utilize a new process for recovering critical battery materials.

Toyota, Argonne National Lab Explore Lithium-Ion Battery Recycling
Mullen Automotive Expands Salesforce

The EV manufacturer has expanded its sales team in support of commercial vehicle sales initiatives.

EV Manufacturer Mullen Announces New Key Hires
Toyota Invests in Kentucky Facility to Boost EV Assembly

Toyota announced a $1.3 billion investment at its flagship Kentucky facility for future electrification efforts.

Toyota Invests in Kentucky Facility to Increase EV Assembly