Toyota and Mazda to build $1.6bn US plant


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EPA

Japanese car giants Toyota and Mazda have teamed up to invest $1.6bn in a new car plant in the US.

The two have also agreed to join forces to develop electric car technology. Toyota is to take a 5% stake in Mazda, while Mazda will also invest in Toyota.

The new US plant aims to produce 300,000 vehicles a year and expects to employ about 4,000 people.

The deal could further cement President Donald Trump’s vision of bringing more jobs to the US.

He has previously told Toyota it would face hefty tariffs on cars built in Mexico for the US market if they were made south of the border.

The new plant will produce Toyota Corollas and a new Mazda SUV crossover.

The companies hope to be able to start production in 2021.



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