TOKYO (Japan): Toyota said Friday it may well discuss strengthening its partnership with Mazda as reports said these folks were all around an agreement for a capital tie-up and developing a US$1.6 billion factory in the states.
The move has come about as the Japanese auto industry is facing uncertainty over President Donald Trump’s drive to aid US firms over foreign imports.
He had earlier strongly criticised Toyota over its ongoing project to produce a brand new factory in Mexico, threatening it with painful tariffs.
Shares in Mazda, with no US plant, soared greater than 5 percent in Tokyo trade early Friday while Toyota was marginally lower.
Toyota said hello would discuss its partnership when using the Hiroshima-based company at the board meeting later inside day.
“In May 2015, Toyota and Mazda signed a memorandum of understanding to understand more about various parts of collaboration,” Toyota said inside of a statement.
“We plan to submit an offer to your board of directors today about the partnership with Mazda,” it said while withholding further details.
Mazda issued the identical statement.
The Nikkei daily reported each firms were closing in on a capital partnership to create the possible establishment of your joint-venture US auto plant and joint growth of key electric vehicle technologies.
They were negotiating a great deal by which Toyota would require a roughly five percent stake in Mazda, which often would purchase the opposite party at the same time, the main business daily said.
Bloomberg News reported the two were considering a great deal to own cross-shareholdings and produce a US$1.6 billion assembly plant in america.
The US plant would\’ve the proportions to form 300,000 vehicles 1 year that will create 4,000 jobs, Bloomberg quoted people experienced with the problem as saying.
It could be operational by 2021, it said.