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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 files patent applications for inline-six technology, new transmission

We've known for some time that Mazda is one of the OEMs getting back on the inline-six engine bandwagon, and a report from Japan gives us a glimpse of some of the automaker's plans. Mazda has filed patent applications for both new exhaust components (depicted with an inline-six) and a new eight-speed automatic transmission.  The news comes from a blog called T's Media (fire up Google Translate), which located the new hardware in two separate fillings, one for exhaust system components and one for the new transmission.  Mazda's lineup has been exclusively powered by four-cylinder engines since the demise of the last-generation CX-9, which utilized a 3.7-liter V6 sourced from Ford. Since, Mazda has relied on turbocharging to get more power out of its SkyActiv four-pots, but changes may be coming. Prior reports have indicated that Mazda wants a new, larger engine architecture to power vehicles built on a new, larger platform. This new chassis is expected to accommodate longitudinal, rear-wheel drive powertrains, which could spawn larger crossovers and SUVs. It could also potentially underpin a new rear-wheel drive coupe, if Mazda decides to go that route.  While the inline engine itself is not news, what we're seeing here might actually be hints as to Mazda's approach to the next generation of its SkyActiv engine architecture. Mazda's exhaust patent seems to describe a scalable — perhaps even modular — setup intended to be used with inline and potentially even V-engines.  "Provided is an engine exhaust structure capable of securing exhaust efficiency while reducing the size of the engine by changing the structure of an exhaust port," a translation of the patent application's introduction says. "[T]here has been proposed a technique for collecting exhaust gas discharged from each cylinder inside a cylinder head without using a separate exhaust manifold with the aim of downsizing the engine." In other words, Mazda is looking for ways to make its future engines more compact, and the strategy detailed here is the use of an integrated exhaust manifold, similar to what other automakers (such as Honda and Ford) have utilized on their smaller-displacement turbocharged engines. The sketch above of an inline-six engine with just two exhaust ports illustrates this concept.  The eight-speed transmission, while noteworthy in its own right as Mazda currently relies on aging six-speeds, doesn't seem to offer us anything particularly game-changing.  Related Video:

China's FAW now building all three Mazda6 generations

The Chinese auto market is one of the most interesting in the world to look at. Its automakers appear to still be figuring things out and remain open to experimentation. For example, at this moment, you can buy new copies of all three generations of the Mazda6 from showrooms there.
Mazda joint-venture partner FAW recently introduced the latest generation to China as the Mazda6 Atenza, according to Just Auto. Yet buyers still have the option of getting the previous generation as well, which is sold as the Mazda6 Ruiyi. Obviously, that isn't too remarkable - companies in the US have briefly sold two generations of the same nameplate simultaneously for brief points in the past, and the practice is much more common in developing markets. However, Chinese consumers still have the third choice, too - the first-generation model that dates back to the early 2000s, is still on offer, known simply as Mazda6.
While it would be hard to imagine selling three generations of the same models at once in the US, the idea is an interesting one. We enjoyed our long-term test of the latest generation, and the previous models weren't bad cars either, so provided there's a healthy difference in pricing and marketplace confusion is limited by differing names, we can see it working. If nothing else, it's a fascinating illustration of how broad China's developing auto market really is.