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Toyota and Mazda in talks to build joint US auto plant

UPDATE: The Toyota-Mazda deal has been announced. A newer version of this story appears here. Toyota Motor Corp and rival Mazda Motor Corp are expected to announce plans on Friday to launch a joint venture and build a new U.S. assembly plant, a person briefed on the matter said. A new auto plant would be a major boost to U.S. President Donald Trump, who campaigned on promises to boost manufacturing and expand employment for American autoworkers. Japan's Nikkei reported on Thursday that Toyota would take a roughly five-percent stake in Mazda Motor Corp to develop key electric vehicle technologies and jointly build a factory in the United States. The deal could be announced as soon as Friday, the newspaper said. The person briefed on the matter, who was not authorized to speak to the media and requested anonymity, confirmed the Japanese carmakers were planning to build a large plant in a yet to be determined U.S. location and planned future joint efforts on electric vehicles. The same source declined to offer further details, however. Toyota, in a statement, said the two companies have been exploring various areas of collaboration under a May 2015 agreement. "We intend to submit a proposal to our board of directors today regarding the partnership with Mazda, however, we would like to refrain from providing further comment at this time," Toyota said in a statement issued by its U.S. operations. Mazda said in statement that "nothing has been decided yet" and added the company "will have a board meeting on this matter today. We cannot comment any further." Toyota, the world's second-largest automaker by vehicle sales in 2016 and Japan's dominant car company, has been forging alliances with smaller Japanese rivals for several years, effectively consolidating the Japanese auto sector. A new U.S. assembly plant would likely become the prize in a fierce competition among Midwestern and Southern states eager to expand manufacturing jobs. Trump in January criticized Toyota for importing cars to the United States from Mexico. The Republican president also threatened to impose a hefty fee on Toyota if it were to build its Corolla cars for the U.S. market at a plant in Mexico. "Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax," Trump said in a post on Twitter. But since January, Trump has praised Toyota for its U.S. investments.

How Mazda got Skyactiv-X to work is incredible

"Take everything you know about engines and turn it around," Mazda North America Vehicle Development Engineer Dave Coleman says, patiently and with a look of benevolent pity, as he's quizzed about the particulars of the company's new engine. The Skyactiv-X engine is enigmatic — and deceptively simple in operation. And the bottom line for American consumers is that they'll be able to buy a car (or crossover; we don't know yet what vehicle will first get it) by late 2019 that provides diesel-like fuel economy but runs on regular old gasoline. In between diesel and spark ignition, but it's neither To truly understand it, you have to dive into the contradictions. Take that regular old gasoline: Contrary to common sense, the lower the octane, the better it works. In the lab, the Skyactiv-X engine loves 80 octane. The lowest Americans get is 87, so the engine is tuned for that octane. Go higher and you lose some low-end torque. Coleman was right. It's hard to wrap your head around an engine that thrives just at the point when most gas engines would aggressively self-destruct. It uses a supercharger to pump additional air — but not additional fuel. It uses spark plugs to start a combustion cycle that normally doesn't need a spark. And, quixotically, it's not displacing Mazda's own American-market diesel engine, currently languishing in a seemingly endless hell of regulatory approval. More bizarre: Mazda is a tiny automaker facing real existential headwinds, and gasoline compression ignition is a massive challenge. GM and Hyundai announced compression ignition, or HCCI, projects (full name, homogeneous charge compression ignition) to great fanfare, but they never amounted to a production hill of beans, crippled by reliability issues or horrible vibrations. Worse, they only worked at an unusably narrow range — low RPMs and low loads. HCCI research improved direct-injection gas and diesel engine technologies for these companies, but HCCI itself remains untamed. The benefits of lean combustion Why even try to tame HCCI? The answer is much better fuel economy and lower emissions. Less burned carbon-based fuel, less carbon dioxide released. That's simple. But there are some thermodynamic reasons for the lean combustion you can achieve with compression ignition that are worth explaining. The ideal amount of fuel for a conventional engine to burn is about a 14:1 air-to-fuel ratio. That lets every molecule burn nicely, in theory.

Mazda taps Americas head as CEO to raise game in its biggest market

TOKYO — Mazda has named the head of its Americas operations as its next president and CEO after its current chief steps down in June, as Japan's fifth-largest automaker seeks to boost profitability in North America, its biggest market. The company said on Friday that Masamichi Kogai will step down and be replaced by current vice president Akira Marumoto, who now oversees operations in the Americas. The changes are effective June 26 after Mazda's annual shareholders' meeting. Mazda, which has global annual sales of around 1.6 million vehicles, has enjoyed a run of rising vehicle sales, expanding in markets particularly in North America, which accounts for nearly 30 percent of total sales. But as one of Japan's smaller automakers and a tiny player globally, it faces growing competition in the United States, where market growth has slowed, and where the company's profitability has sagged due to higher discounting and slowing demand for sedans. The maker of the MX-5 Miata roadster and the reputed Skyactiv gasoline engines also faces higher costs to stay competitive in an industry which is being disrupted by new technologies, including self-driving cars and electric vehicles. Marumoto, a 38-year company veteran with a background in engineering who described himself as having a "strict" work ethic and admitted to being "short-tempered" at times, previously led Mazda's corporate planning and product strategy divisions before heading its Americas operations. He said that growing sales and improving profitability in the North American market would be his biggest priority, along with expanding the company's brand image as an innovative car maker. "Given the rapid changes occurring in the auto industry at the moment it's often asked whether a small company like us will be OK," Marumoto, 60, told reporters at a briefing in Tokyo. "But before we even consider this we need to show our strengths, and what makes us different if we want to grow our brand." Kogai, who became Mazda's president and CEO in 2013, will be following the footsteps of his two immediate predecessors who also held the top job for five years each. He will still be with the automaker and become its chairman, the company said. Earlier this year, Mazda announced that it would invest in a new, $1.6 billion plant in the U.S. state of Alabama as a joint venture with Toyota.