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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.

Weekly Recap: Geneva's splendor reflects growing demand for ultra-luxury cars

Geneva is one of the most glittering auto shows in the world, but the list of high-powered and bespoke luxury cars was decadent this year even by the rich standards of the Swiss exhibition. It's great for enthusiasts to revel in the flame-throwing Aston Martin Vulcan, the racing-inspired elegance of the Bentley EXP 10 Speed 6 concept and the insane performance of the Lamborghini Aventador LP 750-4 Superveloce, but there's a reason for all of this opulence: the luxury market is big business. And it's growing. IHS Automotive forecasts that so-called ultra-premium sales will nearly triple this decade from 123,000 to 353,000 units around the world. The estimate includes brands like Aston Martin, Bentley, Ferrari and Rolls-Royce, but doesn't count BMW, Mercedes and Audi, which offer less expensive models in addition to their high-end flagships. Though IHS includes Porsche and its relatively large volume in the study, the ultra-premium segment is still set grow at about the same rate, even without the German automaker's figures. So what is propelling all of this growth in the most expensive segment of the auto industry? Put simply, there's more rich people. IHS Automotive principal analyst Tim Urquhart pointed to economic expansion in China, market recovery in the United States and a surge in the lucrative technology sector as contributing factors. This dovetails with a research report by UK-based Oxfam, an international relief organization, which found the world's richest one-percent owned 48 percent of global wealth in 2014, and it's expected to increase to more than 50 percent by 2016. View 17 Photos Carmakers are moving quickly to capitalize with new products, expanding their portfolios with low-volume speedsters like the 800-hp V12 Vulcan at Geneva, and plans to enter new segments, like Rolls-Royce's strategy to make an SUV. "Ultra-premium carmakers are looking to explore ways of growing their product offerings, and thus their bottom lines, in this most potentially profitable of segments," Urquhart wrote in a report on the Geneva show. In a nutshell, there are more choices for people with more money. It's a good time to have expensive taste. Other News & Notes 2016 Mazda MX-5 Miata production launches It won't be long now. The 2016 Mazda MX-5 Miata arrives later this year, and it's officially in production. Mazda announced this week that the roadster began rolling off the assembly line at its Ujina factory in Hiroshima, Japan.

2019 Mazda CX-5 Review and Buying Guide | The driver's choice

The 2019 Mazda CX-5 stands out in an ever-expanding field of similarly sized compact crossovers. There are several good options for shoppers looking to replace the traditional family sedan with something that sits up a little higher and offers some added utility via a reasonably sized open cargo area instead of a closed-off trunk. But if you really enjoy spending time behind the wheel, there isn’t a small crossover that can match the Mazda CX-5Â’s blend of excellent driving dynamics, practicality and affordability. For that reason, weÂ’d suggest that everyone shopping in this segment should take the CX-5 for a test drive. WhatÂ’s new for 2019? The CX-5 gets its first significant update since being completely redesigned for 2017. There are two new engine choices. A 2.5-liter turbocharged four-cylinder is the more powerful option the CX-5 has always needed, while the new 2.2-liter diesel engine is the answer for those who want better fuel economy. Every CX-5 benefits from a retuned suspension setup and MazdaÂ’s G-vectoring Control Plus system, which are intended to improve the 2019 CX-5Â’s handling. A revised infotainment system loses its touchscreen capability but now offers Apple CarPlay and Android Auto capability (it is not, however, the all-new and greatly improved system found in the Mazda3). Also new for 2019 is a top-spec Signature trim level that adds a layer of wood and chrome trim to the interior to go along with attractive brown leather upholstery and a 360-degree camera monitor. A set of 19-inch Dark Silver aluminum wheels and unique badging round out the noteworthy Signature upgrades. WhatÂ’s the CX-5's interior and technology like? The CX-5 boasts a handsome, upscale design with materials to match. The cabin conveys the more premium vibe that Mazda is increasingly shooting for – it also makes a more emotional connection than the typical cardboard box on wheels. Its top two trim levels, Grand Touring Reserve and Signature, boast seats that are heated all around and ventilated up front, covered in high-quality leather with contrast French stitching. There's stitching on the dash too, though it goes through rubbery stuff. The padded and stitched pleather on the doors and center console are a nicer touch, as is the subtle dark wood and alloy trim – especially the air vents that seem to jut out from within the dash.