Donald Trump says Toyota and Mazda's U.S. investment 'great for American manufacturing'
- Author: Darren Santiago Aug 05, 2017,
Aug 05, 2017, 0:12
The plant will be capable of producing 300,000 vehicles a year, with production divided between the two automakers, and employ about 4,000 people.
Corolla production in the U.S. should also take some of the sting off the potential import tax for Toyota, too, as it's one of the brand's bestsellers across the pond, alongside the RAV4 and Camry.
A location for the new USA plant has not been announced.
The deal could further cement President Donald Trump's vision of bringing more jobs to the US.
Mazda said it would make crossover models at the plant for sale in North America.
Sensex, Nifty hit record high
On the currency front, the rupee strengthened by nine paise to 64.34-35 to a U.S. dollar from its previous close at 64.43-44. "Markets began the week on a positive note as it surged higher to close at new highs despite softness in Europe".
Toyota operated a final assembly plant in Fremont, California, with General Motors until the plant closed in 2010 as GM went through a structured bankruptcy. "Also, amid signs that overall USA auto demand has peaked, building a plant via a joint venture will reduce the risk for both companies". A great investment in American manufacturing!
In that respect the deal resembles the global alliance between Japanese automakers Nissan and Mitsubishi and French automaker Renault.
Toyota has been creating alliances with Japanese rivals for years. At the time, the automaker was considering making cars for the US market in Mexico.
"The new presidential administration has made it clear investments in the USA are a top priority, and this plant may be another nod to that mindset", Anand said.
Toyota and the much smaller Mazda also announced a new business partnership on Friday - the latest example of consolidation in the auto industry.
Mazda also stands to gain a production stake in the USA, which is its biggest market. "The fruit of our partnership [with Mazda] is that we were able to gain a companion who loves cars".
Also Friday, Toyota reported its April-June profit was 613.0 billion yen ($5.6 billion), up 11 percent from 552.4 billion yen a year earlier.