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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.

Scion was slain by Toyota, not the Great Recession

Scion didn't have to go down like this. Through the magic of hindsight and hubris, it's easier to see what went wrong. And what might have been. What the industry should understand is this: Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. This is more than just the failure of a sub-brand. It's the failure of a company to deliver new and compelling products over an extended period of time. Toyota will point to the Great Recession as the reason it hedged its bets and withdrew funding for new vehicles, instead of using that as an opportunity to redouble efforts. This was as good as a death warrant, although myopically no one realized it at the time. Sadly, GM's Saturn experiment was a road map for this exact form of failure. No one at Toyota seemed to think the Saturn experience was worth protecting their experimental brand from. Or they weren't heard. Brands live and die on product. Somehow, Scion convinced itself that its real success metric was a youthful demographic of buyers. It seems like this was used to gauge the overall health of the brand. Look at the aging and uncompetitive tC, which Scion proudly noted had a 29-year-old average buyer. That fails to take into account its lack of curb appeal and flagging sales. Who cares if the declining number of people buying your cars are younger? Toyota is going to kill the tC thirteen years [And two indifferent generations ... - Ed.] after it was introduced. In that time, Honda has come out with three entirely new generations of the Civic. Scion wasn't a losing proposition from the get-go. Its death is due to negligence and apathy. At launch, the brand could have gone a few different ways. The xB was plucky, interesting, and useful – a tough mix of ephemeral characteristics – but the xA didn't offer much except a thin veneer of self-consciously applied attitude. That's ok; it was cute. Enter the tC, which managed to combine sporty pretensions with decent cost. It took on the Civic Coupe in the contest for coolness, and usually managed to win. More importantly, an explicit brand value early on was a desire to avoid second generations of any of its models, promising a continually evolving and fresh lineup. At this point, the road splits. Down one lane lies the Scion that could have been. After a short but reasonable product lifecycle, it would have renewed the entire lineup.

Andrew Gilleland is new VP of Scion, Murtha moves to Toyota

Scion is getting some fresh blood at the top as Andrew Gilleland (pictured above) becomes the new vice president to take over for Doug Murtha. Gilleland is no stranger to the division, and served as the national field operations manager early in the brand's launch. Murtha moves to take leadership of corporate strategy and planning for Toyota in North America. "Now it's Andrew's charge to spread the message of the style and value of the iM and iA, as well as a third new vehicle that will be added to the lineup," Toyota division group vice president Bill Fay said in the announcement. Gilleland moves up from being general manager of Toyota's central Atlantic regional office. He takes the reins at Scion at a potential turning point for the division. Sales volume for the year through August is down 22.1 percent to 32,691 vehicles, but some big changes are afoot. The long-lived xB is likely about to bow out, and the brand is launching two new products with the iM and iA. They're getting some celebrity advertising, too. Spy shots also suggest the FR-S might get a refresh soon. Plus, the third model Fay teases is expected to be a compact crossover, possibly with styling inspiration from the Toyota C-HR concept. Scion could get a big boost by having an entry in that booming segment. New Products, Previous Player - Scion Introduces New Vice President Andrew Gilleland Returns to Youth Brand September 24, 2015 TORRANCE, Calif. (Sept. 24, 2015) – In the early days of Scion, when xAs and xBs were flying out of dealers' showrooms, Andrew Gilleland was the National Field Operations Manager for the youth brand. He was responsible for working with dealers to ensure they embraced the new products and processes Scion offered. Now, Scion is entering its teen years, and Gilleland is back as Vice President of Scion, once again encouraging dealers to sell its new models and investigate new methods to attract young buyers. "Scion has sold nearly a million vehicles since I left in 2005 and I'm excited to be back leading this team," said Gilleland. "The iM 5-door hatchback and iA sports sedan arrived at dealerships earlier this month and the response has been great.