Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Manufacturing

Toyota discussing stronger alliance with Mazda

Toyota said it would discuss its partnership with the Hiroshima-based company at a board meeting later in the day.

TokyoJapan, Aug 4 – Toyota said Friday it would discuss strengthening its partnership with Mazda as reports said they were close to a deal on a capital tie-up and building a $1.6 billion factory in the United States.

The move comes as the Japanese auto industry is facing uncertainty over President Donald Trump’s drive to support US firms over foreign imports.

He had earlier strongly criticised Toyota over its ongoing project to build a new factory in Mexico, threatening it with painful tariffs.

Shares in Mazda, which has no US plant, soared more than five percent in Tokyo trade early Friday while Toyota was marginally lower.

Toyota said it would discuss its partnership with the Hiroshima-based company at a board meeting later in the day.

“In May 2015, Toyota and Mazda signed a memorandum of understanding to explore various areas of collaboration,” Toyota said in a statement.

“We intend to submit a proposal to our board of directors today regarding the partnership with Mazda,” it said while withholding further details.

Mazda issued a similar statement.

The Nikkei daily reported the two firms were closing in on a capital partnership to pave the way for the possible establishment of a joint-venture US auto plant and joint development of key electric vehicle technologies.

They were negotiating a deal in which Toyota would take a roughly five percent stake in Mazda, which in turn would invest in the other party as well, the leading business daily said.

Advertisement. Scroll to continue reading.

Bloomberg News reported the two were considering a deal to have cross-shareholdings and build a $1.6 billion assembly plant in the United States.

The US plant would have the capacity to produce 300,000 vehicles a year and create 4,000 jobs, Bloomberg quoted people familiar with the matter as saying.

It would be operational by 2021, it said.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...