According to a new report, Japanese automakers Toyota and Mazda are close to reaching an agreement toform a new partnership. And assuming the deal goes through, thenext step will reportedly be to build a new joint factory somewhere in the southern U.S
Citing theNikkei Asian Review,Automotive News reports that Toyota plans to buy a 5-percent stake in Mazda, with Mazda then buying an undetermined amount of Toyota. The resulting partnership would likely lead both companies to collaborate on future electric vehicle technology, as well as a future factory.
So far, a location for the factory has yet to be chosen, butAutomotive Newsexpects it to be builteither in the Midwest or the Southeast. The plant will reportedly assemble SUVs for each company, potentially pumping out 300,000 vehicles per year. Currently, Mazda already builds the Yaris iA for Toyota at its Salamanca plant inGuanajuato, Mexico.
“In May 2015, Toyota and Mazda signed a memorandum of understanding to explore various areas of collaboration,” Toyota told Automotive Newsa statement. “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.”