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Toyota and Mazda agree to produce EVs in US and work on connected car technology

Toyota and Mazda have signed an agreement to enter a business and capital alliance, with the aim of further strengthening their lasting partnership.

Mazda-Toyota-T'wire

The companies agreed to:

1) Establish a joint venture that produces vehicles in the United States.

2) Jointly develop technologies for electric vehicles.

3) Jointly develop connected-car technology.

4) Collaborate on advanced safety technologies.

5) Expand complementary products.

In the capital tie-up, the two companies have also agreed that Toyota will subscribe for and acquire shares to be newly issued by Mazda through a third-party allotment, and at the same time Mazda will subscribe for and acquire third-party allocation shares of treasury stock disposed of by Toyota in the equivalent amount in value to the Mazda shares (shareholding ratio of 5.05% on an issued share basis after the capital increase; total value of 50 billion yen).
The value of the shares mutually acquired by both companies will be equivalent.

On May 13, 2015, Toyota and Mazda entered an agreement to build a continuous partnership that would mutually benefit the companies in such forms as leveraging the resources of both companies and complementing each other’s products and technologies toward the goal of making more-appealing cars. Since then, both companies have discussed various areas to explore, based on the principle of building an equal and favorable relationship in the long term.

About Piyush Rajan

Asst. Business Editor |Telematics Wire | Smart automotive

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