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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.

4 automakers agree to $553M settlement of Takata airbag claims

WASHINGTON (Reuters) - Four automakers agreed to a $553 million settlement to address class-action economic loss claims covering owners of nearly 16 million vehicles with potentially defective Takata airbag inflators, according to court documents filed on Thursday. Toyota's share of the settlement costs is $278.5 million, followed by BMW at $131 million, Mazda at $76 million and Subaru at $68 million. According to a press release from Plaintiffs' Committee for Takata Airbag Product Liability Litigation, the funds for the settlement are aimed at getting more cars with faulty airbags fixed. At the time of writing, Toyota had the greatest recall completion percentage of 31.89 percent followed by Subaru with 31.37 percent. Mazda has completed repairs on 18.16 percent of affected cars, and BMW brings up the rear with 16.48 percent completion. Some settlement funds will go to an outreach campaign to increase awareness, while other funds will be used to reimburse people for any costs accrued to get their cars fixed. These costs can include rental cars, child care, lost wages, or any other reasonable costs associated with bringing in a vehicle for repairs. Furthermore, a customer support program will be funded with settlement money to handle any additional repairs or adjustments that could become necessary in the 75,000 miles following the airbag replacement. Lawsuits against Honda, Ford and Nissan have not been settled, lawyers said. Takata inflators, which can explode with excessive force and unleash metal shrapnel inside cars and trucks, are blamed for at least 16 deaths and more than 180 injuries worldwide. The safety defect has prompted recalls worldwide of about 100 million inflators by more than a dozen major automakers. Reporting by David Shepardson, additional details by Autoblog's Joel StocksdaleRelated Video: Government/Legal BMW Mazda Subaru Toyota

Patent application suggests Mazda rotary return

A recent patent application by Mazda reveals that the Japanese automaker is still working on the rotary engine. This could in fact be the Skyactiv-R engine found in the RX-Vision concept from the 2015 Tokyo Motor Show. As with anything Wankel-related, nothing is certain until Mazda makes a production commitment. But this filing suggests that serious development is happening in Hiroshima. The 2011 Mazda RX-8 was the last rotary-powered car you could buy in America. Slow sales, poor fuel economy, and tighter emissions standards prevented Mazda from committing to a follow-up. But the fundamental principles of the rotary - compact size and light weight - perfectly fit Mazda's Skyactiv ethos. (For an explanation of how rotaries work, click here.) In this new engine the intake port sits at the bottom of the engine with the exhaust port on top instead of the other way around. That allows for lower mounting, which improves a car's center of gravity. This rotary is also turbocharged. Putting the turbo up high helps ensure it doesn't get in the way of any body or chassis crossmembers. The implication of those claims is that somebody is thinking about how to put this engine in a car. There are other benefits as well. The short path from the exhaust port to the turbo ensures minimal turbo lag. It also allows for a close-mounted catalyst on top of the enigne, which will help emissions. Another innovation in this new engine is a triangle-shaped rotor that covers part of the exhaust port. This allows for different exhaust flow characteristics. The filing claims that that two of the four orientations allow for less airflow resistance in the exhaust port. As in previous Mazda rotaries, there are two spark plugs to manage ignition timing and combustion. But unlike in the 16X concept, Mazda's last public display of such an engine, the new rotary uses port fuel injection. Keep in mind this is only a patent application. A Mazda spokesperson refused to comment on future product, but commented "As we stated at the Tokyo motor show, Mazda is doing all that it can to bring a rotary to the market." In the meantime, keep your RX-7 prayer candles lit and hope for the return of the rotary before the end of the decade. You can bide your time by reading the entire application here. Related Video: Related Gallery Mazda RX-Vision Concept: Tokyo 2015 View 11 Photos News Source: USPTO via autoevolution Rumormill Mazda Performance rotary mazda rx7