Monday, August 7, 2017

Toyota and Mazda to Share Manufacturing, Technology

The decision between competition and collaboration isn’t always an either/or. That’s underscored by a recent announcement by Toyota Motor Corporation and Mazda Motor Corporation. Even though both remain competitors, they’ll be sharing research and development — and even a manufacturing facility here in the States — in the years ahead. Keyes Toyota takes a closer look.
The deal, which gives each company a small stake in its competitor, does a few things. It moves production of the Toyota Corolla from Mexico to the US (the Mexican facility reportedly will take on production of the Toyota Tacoma). It gives Toyota a collaborator as it seeks to further develop connected cars and electric vehicles. It will also represent the company’s eleventh US factory, bringing another four thousand jobs to whichever state ends up hosting the plant.

This isn’t an entirely new development, given that the two companies have been sharing ideas and technology for at least the last two years. However, it’s a welcome one. As the industry becomes more competitive and regulations — from the local to the international level — become more stringent, it can help having a fresh perspective.

There are other reasons for the new plant, including concerns around import duties, access to top-flight R&D centers (like the Toyota Research Institute), and the kinds of economic incentives likely to be offered from whichever state hosts the new plant. Indeed, several Southern and Midwestern states have already signaled their enthusiasm for the project.

Those developments will take a few years to come to fruition. There’s plenty to enjoy here and now at our local Toyota dealership. Come to Keyes Toyota at 5855 Van Nuys Blvd in Van Nuys, CA to see the lineup of new Toyota cars for yourself, or to schedule a test drive!

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