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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.

Mazda keeping non-hybrid, non-electric Skyactiv strategy

Mazda still thinks that it can buck the trend of adding those fancy batteries and electric motors to its cars. At least for a little while longer. Hopefully. Speaking to Auto Express recently, Mazda's European boss, Jeff Guyton, said that he expects his company's cars to be able to get a lot more efficient without resorting to any of that fancy electrification stuff. "I think there's at least 20-30 percent better fuel economy by the end of the decade," he said. He said that he expected to get to Europe's low target of 95 grams of CO2 per kilometer, "without any significant deployment of electrical drive." This part is all in line with Mazda's long-term Skyactiv strategy, as laid out back in 2011 and first mentioned publicly in 2010. Remember, this is the company that once proudly proclaimed, "Not Electric. Not Hybrid. Not A Drag To Drive." As explained back in 2011, Mazda hopes to wait until other automakers have done all of the heavy lifting on developing plug-in and hybrid tech so that when Mazda enters the market, things will be cheaper. Of course, Mazda has been quietly testing all-electric vehicles and Guyton said that there may be an Mazda EV at some point. "We are interested in electric technology and it will be in the distant future when it will be quite important," he told AE. "But we think it will take some time to be commercially attractive without tax payer-funded incentives." How much of a delay? Well, there is a gas-electric Mazda 3 hybrid available in Japan that uses some powertrain parts from the Toyota Prius, and we all know that the Prius has been around for ages. Maybe in 2025, Mazda will come out with a Leaf-based Mazda 2. Related Video: Green Mazda Fuel Efficiency Electric Hybrid skyactiv mazda skyactiv

2018 Mazda CX-5 is the only IIHS Top Safety Pick Plus compact crossover

We've highlighted a number of vehicles tested by the IIHS, and specifically ones that come up just a little short of being lauded with the organization's highest safety rating of Top Safety Pick+. The reason most of these vehicles fall short is sub-par headlights. But this time we have a different story. The 2018 Mazda CX-5 actually snagged the coveted award, and impressively, it's the only small crossover SUV the organization has tested to earn it. The reason of course hinges on headlight performance. In order for a vehicle to get the award, it has to have headlights available that score a "Good" rating, in addition to having stellar crash tests. The award for good lighting and the Top Safety Pick+ only goes to the CX-5 with the optional adaptive lighting system available on all trims (optional on the base Sport). The standard headlights on the Sport model earned the second-highest rating of "Acceptable." The CX-5 also earned a "Good" rating in every crash test, including both small-overlap tests. It earned 5 out of 6 points in forward collision prevention, netting a "Superior" rating. There are many safe options in the small SUV category besides the CX-5, though. The Honda CR-V, Hyundai Tucson, Kia Sportage, Mazda's own CX-3, and Mitsubishi Outlander match the CX-5's straight-"Good" crash test ratings. They all also pick up an additional forward collision point in the collision warning category. The best headlights any of them can offer, though, are just "Acceptable," and the standard headlights can be even worse with "Marginal" or "Poor" ratings. Related Video: Featured Gallery 2017 Mazda CX-5: First Drive View 25 Photos News Source: IIHS, MazdaImage Credit: Mazda Mazda Safety Crossover SUV consumer mazda cx-5