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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.

Fascinating if true: Toyota GR 86 could spawn Lexus variant

Neither the Toyota GR 86 or its Subaru BRZ platform twin are out yet, but there are already whispers of a third variant for the lightweight sports coupe. Japanese media are reporting that the GR 86 will spawn a Lexus variant, and that there's already a name for it, the Lexus UC. According to Japanese site Spyder7, the UC will stand for Urban Coupe, fitting in nicely with the Lexus UX nomenclature. It might measure slightly larger than the GR 86. The upcoming GR 86 has a length of 168 inches, but the report says the the Lexus UC could be almost a foot longer, with a total length of about 177 inches. That doesn't mean there will be any more interior room. The extra length will likely come from a heavily redesigned front and rear fascia, much more different than the GR 86 and BRZ are from each other. Lexus Enthusiast has a spy shot of the vehicle allegedly undergoing testing. The car in the photo wears a version of Lexus's trademark spindle grille. Meanwhile, Creative Trend reports that the UC's 2.4-liter boxer engine could be mated to a plug-in hybrid powertrain. Subaru does not currently have a PHEV system attached to that engine. The Crosstrek PHEV uses a 2.0-liter engine for its gasoline half, so if these rumors prove correct it would be a first for the 2.4-liter. The report also states that the interior might take on the new Lexus interface that debuted recently with the NX. That would differentiate the Lexus even more from the Toyobaru twins, which have almost identical cabins. While all of this still resides in the realm of rumor, Toyota did make one official announcement regarding the GR 86. It will make its driving debut at the Goodwood Festival of Speed, where the GR Supra made a similar appearance in 2018. We'll be looking for it when the event opens July 8. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2017 Toyota 86: The car so nice it's been rebadged twice

When the dust settles and the Scion brand is no more, the car we currently know as the Scion FR-S will be rebadged. Again. If you remember the excitement that surrounded the Toyobaru/Subota rear-drive sports coupes' introduction, you'll recall that Scion's Subaru BRZ twin landed in here as the FR-S. That car, along with the new iA and iM, will get a stay of execution next year when the brand bids adieu. We know it will wear a Toyota badge in dealers from then on, and there's a good chance it will get the 86 badge European models wear. Toyota's version of the car goes by several different names depending on the market. It's only a Scion in North America, while it's sold as the Toyota 86 (in Asia, Australia, New Zealand, South America, and South Africa), Toyota GT86 (in Europe and New Zealand again), and Toyota FT86 (in Nicaragua and Jamaica). The 86 part of the name is a nod to the rear-drive AE86 Corollas of the 1980s. That's a history lesson Toyota likely won't have to teach its core demographic. Then again, this car's core demographic probably already bought one. There's also a possibility that this car will get yet another name combination: Toyota FR-S. For the sake of simplicity, let's hope not. View 7 Photos So yes, the rebadged 86 will be re-rebadged back to a Toyota. Functionally this means almost nothing. Buyers who were ordering badge-swap kits from overseas will save some money. Some enthusiast forums might need to change their names. And people visiting from Japan or Europe will feel a little more at home when they see a rear-drive Toyota sports car on the street. Meanwhile, FR-S – a name that may or may not have stood for "front-engine, rear-drive, sport" – will be quickly forgotten. Related Video: Scion Toyota confirmed toyota 86