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Toyota, Mazda partner to build EVs at new $1.6 billion U.S. plant

TOKYO — Toyota and Mazda plan to build a $1.6 billion U.S. assembly plant, the two said on Friday, as part of an alliance that will also see the Japanese automakers jointly develop electric vehicle technologies. The two will take small stakes in each other as part of the tie-up: Toyota, the world's second-largest automaker by vehicle sales last year, will take a 5 percent share of Mazda, extending its dominance in Japan's auto sector. Mazda will take a 0.25 percent share of its larger rival. The plant, something of a surprise at a time of overcapacity in the U.S. market, will be a boost to U.S. President Donald Trump, who campaigned on promises to increase manufacturing and expand employment for American autoworkers. 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. It will start operating in 2021. The electric vehicles cooperation, meanwhile, comes as the tightening of global emissions regulations prompts more automakers to develop battery powered cars, as the industry struggles with hefty research costs and intense competition from technology companies over technology like self-driving cars. As part of the agreement, Toyota and Mazda will also work together to develop in-car information technologies and automated driving functions. Toyota, Japan's biggest auto company, has been forging alliances with smaller Japanese rivals for several years, effectively engineering a loose consolidation of the Japanese auto sector. It already owns a 16.5 percent stake in Subaru, Japan's No. 6 automaker, with which it also has a development partnership. Toyota is also courting compact car maker Suzuki to cooperate on R&D and parts supply as Toyota seeks to tap its smaller rival's expertise in emerging Asian markets. A stake in Mazda may also prevent future incursions by tech companies, one analyst said. "For a technology company which lacks the expertise in making cars, Mazda could look like a very interesting acquisition. They're very good, they're not too expensive. Maybe Toyota realizes this," CLSA managing director Chris Richter said. "By buying a 5 percent stake, Toyota takes Mazda off the table rather than having it sit out there like a free agent which could someday be used against them." COROLLA PRODUCTION SHIFT Mazda stands to gain from a deal that gives the small automaker a production foothold in the United States.

2020 Mazda CX-5 diesel is still, and perhaps forever, MIA

Halfway through 2020, the most recent Mazda CX-5 diesel you can find anywhere in the U.S. is a 2019 model year — the only one offered so far. With automaker factories beginning their model-year turnovers shortly, CarsDirect did some poking around as to the fate of an oil-burning 2020 CX-5. The outlet couldn't get definitive answers, but a host of secondary evidence suggests the diesel crossover will skip this year, naturally leading to the question of whether the model will skip this market from now on.  Asked in April about the crossover's fate or its arrival, Mazda would only say that "with the current state of the world, many things are tentative." The following month, the automaker's early fleet ordering guide pegged this month as marking the end of CX-5 production, 2021MY crossovers starting down lines in August. Mazda had nothing to say about that information, either. When CarsDirect got in touch again for this latest report, Mazda professed the delay has nothing to do with emissions certification. Then the wall went up again, the only other comment being, "We cannot confirm any details for the CX-5 Diesel at this time."    We're speculating, but at this point, even if Mazda could get 2020MY CX-5 diesels on the lot, why should the automaker bother? The challenges for diesel in general, and this expression of diesel particularly, are clear to everyone; our last post on the CUV, six months ago, was about the five-figure discounts dealers were offering. A quick check on Autotrader at the time of writing shows 45 examples of the 2019 CX-5 diesel available nationwide, plenty of them still priced in the low- to mid-thirties. On Autotrader Canada, which specifies vehicle availability beyond the "1,000+ Results" on the American site, there are 6,135 CX-5s listed nationwide, only 58 of them diesel. Canadian outlet Motor Illustrated wrote, "Mazda recently told us they had a lot of Mercedes-Benz GLE diesel owners and other diesel fans with upscale models trade for a CX-5 diesel." Apparently luxury diesel crossover conquest buyers aren't numerous enough to support a model line. The gasoline versions of the 2020 Mazda CX-5 launched in November last year. It shouldn't take that long for us to find out about the fate of the 2020 CX-5 diesel, or if there will be a 2021 model. Related Video:    

Fiat 124 Coupe could join Spider line next year

While Mazda's content to tease coupe lovers with the last-gen MX-5 Power Retractable Hardtop and the upcoming RF, the company is loath to offer a version of its lovable roadster with a permanent hardtop. But Fiat isn't so fickle. According to Autocar, the Italian brand could unveil a proper hardtop Fiata as early as next year. Likely called the 124 Coupe – duh – Autocar reports the addition of a fixed roof will spice up the current Spider. But what kind of spice is more difficult to predict. AC reports that FCA could stay the course, offering the new hardtop with the same powertrain lineup as the Spider – 138 horsepower in the UK and 160 hp (164 hp in Abarth trim) in the US – or drive the 1.4-liter turbocharged four-cylinder higher. As for how the car will look, Autocar points to the handsome 124 Abarth Rally Concept from the 2016 Geneva Motor Show. Don't expect integrated rally lights or a standard yellow-on-red paint scheme, but the new model will likely borrow that concept's roofline – more notchback than the MX-5 RF's fastback-like look. That'd fit with the 124 Coupe's ancestors, which wore a traditional notchback roofline. Fiat offered a 124 hardtop between 1967 and 1975, giving a new hardtop Fiata much more historical precedence than a comparable MX-5. AC reports the new 124 Coupe will likely carry a 10-percent premium across the pond, with a similar increase in the US. But predicting the impact of that price hike is a little bit trickier than multiplying the 124 Spider's price by 1.1, since we don't know what trims the Coupe will come in. The Abarth is likely a shoe-in, starting around $31,000. If, and it's a big if, Fiat sells a 124 Coupe Classica, expect a $27,500 starting price, while a hardtop Lusso would be a smidge over $30,000. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.