Toyota Motor Corporation and Mazda Motor Corporation have formed an alliance which will see them collaborate on technology and manufacture vehicles together in the US.
The agreement - the result of two years of “collaborative and deliberate discussions” between the two manufacturers - will be formalised by Toyota’s acquisition of 31,928,500 shares to be newly issued by Mazda through a third-party allotment, and Mazda’s acquisition of the equivalent value of third-party allocation shares of treasury stock disposed of by Toyota.
Toyota’s shareholding in Mazda will amount to 5.05% with Mazda’s shareholding in Toyota around 0.25%, a statement by the two manufacturers revealed.
As part of the new alliance, Toyota and Mazda have agreed to: establish a joint venture that produces vehicles in the United States; jointly develop technologies for electric vehicles; 3) jointly develop connected-car technology; 4) collaborate on advanced safety technologies; and 5) expand complementary products.
Marking the agreement, 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.”
Mazda president and chief executive, 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.”
Today’s agreement deepens a relationship between Toyota and Mazda which was initially formed in May, 2015, when Toyota and Mazda entered an agreement to build a continuous partnership that would mutually benefit the companies by “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 favourable relationship in the long term.