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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.

Honda may recall up to 1M vehicles for airbag issue, following Toyota's lead

It seems Toyota won't be the only one recalling the faulty Takata airbag inflators for long. Honda insiders in Japan claim that the company is getting close to announcing its own worldwide campaign that would begin before the end of June.
Unnamed sources close to Honda in Japan tell Automotive News that the company is pursuing an internal investigation into possibly affected models and is working with Takata to gather more information. They claim that it could involve even more than the 1.14 million cars worldwide that the automaker covered under the first recall for the problem in April 2013, including 561,000 vehicles in the US.
Toyota jumpstarted this process last week when it recalled over 2 million cars worldwide, including 844,277 in the US. Soon after, the National Highway Traffic Safety Administration began a preliminary evaluation into the issue following six reported incidents, and started assembling data about potentially affected models from Toyota, Honda, Mazda, Nissan, Chrysler. NHTSA also began investigating Takata itself.

2019 Mazda CX-5 Turbo Drivers' Notes Review | More power, more love

The second-gen Mazda CX-5 has been on sale since 2017, but the big news for this year is the addition of a new turbocharged 2.5-liter inline-four. The engine — dubbed Skyactiv-G — is shared with the Mazda6 and the Mazda CX-9 three-row crossover and makes 227 horsepower and 310 pound-feet of torque on regular gas and up to 250 hp when running premium fuel. Fuel economy for the new engine is rated at 22 mpg city, 27 mpg highway and 24 mpg combined. The engine is only available with all-wheel drive, but the extra grunt means fuel economy is down from the naturally-aspirated 2.5-liter inline-four (24 city, 30 highway and 26 combined). The new engine is wrapped in the same familiar package we've seen for the past couple of years, but is exclusive to the range-topping Grand Touring Reserve and Signature trim levels. This particular test car was a Signature, which starts at $37,935 before options. For reference, a base, front-wheel drive CX-5 Sport starts at $25,395. Standard features on the CX-5 Signature include 19-inch wheels, LED lighting, rain-sensing wipers, leather seating, heated front and rear seats, a heated steering wheel, adaptive cruise control, proximity entry and push-button start, and a Bose audio system. Options on this Soul Red ($595) model are restricted to accessory items: $70 for a cargo mat, $125 for all-weather floor mats, $400 for illuminated door sills, $125 for a rear-bumper guard and $250 for a retractable cargo cover. The final MSRP comes in just below $40,000. Our contributor Ben Hsu had high praise for the CX-5 turbo in our recent first-drive review. Now the rest of us have had a crack at it. Editor-in-Chief Greg Migliore: I love the CX-5's looks and driving dynamics. It's a sporty Mazda tailored to the crossover segment. This one, done up in Soul Red Crystal Metallic (what a name) and Signature trim with smokey 19-inch wheels, looks great. The Skyactiv-G four-cylinder with 227 hp (on 87 octane) and 310 pound-feet of torque makes for a brisk driving experience. In Sport mode, it's almost more eager than I want it to be. The main downside is the interior. The materials are just fine, and the infotainment is a little clunky to use. It takes a few more moves than I'd like to change the radio station. Also, major demerits for not being able to put a rear-facing car seat in the middle. Considering young families are a target market for this, that is not ideal.