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Mazda and Toyota have announced a partnership to produce a new vehicle for our market. Mazda will build a subcompact economy car for North America based on its own Mazda2 at its soon-to-be-finished facility in Mexico for sale under the Toyota banner. The plant will build around 50,000 units per year once production begins in during the summer of 2015, leaving a further 90,000-unit capacity for Mazda vehicles.

Toyota has invested a proportional amount of funds in the plant's production equipment to offset the cost, and hopes to have a more competitive North American lineup as a result of the collaboration. Mazda, meanwhile gains the benefit of spreading production costs over a greater number of vehicles per year.

The move certainly makes sense as Japanese manufacturers look to send more manufacturing out of Japan in the face of the stronger yen. In addition, last year's earthquake and tsunami disasters underscored the need for a production network capable of flexibly responding to localized disasters, leaving many Japanese automakers with production delays and thin supply.

Mazda, meanwhile, has increasingly sought outside assistance with its manufacturing and engineering efforts as it looks to turn a profit again. The company recently courted Italian automaker Fiat in a tie-up that will see Mazda develop the platform for the next-generation MX-5 Miata and an Alfa Romeo roadster. As for the new partnership, while Toyota isn't saying what this subcompact model will be called, we have to wonder if it's a next-generation Yaris. Last we heard, the subcompact was slated to be built in France and imported into the US. Check the brief press releases from both automakers below for more information.
Show full PR text
Mazda to Produce Toyota Vehicle at Mexico Plant

TOYOTA CITY, Japan, Nov. 9, 2012 - Toyota Motor Corporation (TMC) and Mazda Motor Corporation (Mazda) announced that Mazda's plant in Mexico, currently under construction, will produce a Toyota-brand vehicle for sale mainly in North America. The sub-compact Toyota-brand vehicle, to be based on the Mazda2, is to start production around the summer of 2015 at a pace of 50,000 units per year and will be sold through Toyota dealerships.

Mazda's plant in Mexico is scheduled to start production within the fiscal year ending March 2014, with Toyota investing an appropriate portion of production equipment costs and development costs related to the Toyota vehicle and also an appropriate portion of costs related to the plant's production-capacity increase.

Through the agreement, TMC aims to strengthen its North American vehicle lineup, while Mazda aims to increase production efficiency and contribute to its profitability.

Mazda Mexico Plant Outline (as of June 17, 2011 Mazda announcement)

Company name Mazda Motor Manufacturing de Mexico S.A. de C.V.
Location Salamanca city, Guanajuato state, Mexico
Products Mazda2, Mazda3
Annual production capacity 140,000 units
Employees Approx. 3,000

Mazda to Produce Toyota Vehicle at Mexico Plant

Nov 9, 2012

TORONTO, Nov. 9, 2012 /CNW/ - Toyota Motor Corporation (TMC) and Mazda Motor Corporation (Mazda) announced that Mazda's plant in Mexico, currently under construction, will produce a Toyota-brand vehicle for sale mainly in North America. The sub-compact Toyota-brand vehicle, to be based on the Mazda2, is to start production around the summer of 2015 at a pace of 50,000 units per year and will be sold through Toyota dealerships.

Mazda's plant in Mexico is scheduled to start production within the fiscal year ending March 2014, with Toyota investing an appropriate portion of production equipment costs and development costs related to the Toyota vehicle and also an appropriate portion of costs related to the plant's production-capacity increase.

Through the agreement, TMC aims to strengthen its North American vehicle lineup, while Mazda aims to increase production efficiency and contribute to its profitability.

Mazda Mexico Plant Outline (as of June 17, 2011 Mazda announcement)

Company name Mazda Motor Manufacturing de Mexico S.A. de C.V.
Location Salamanca city, Guanajuato state, Mexico
Products Mazda2, Mazda3
Annual production capacity 140,000 units
Employees Approx. 3,000
SOURCE: Mazda Canada Inc.


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    • 1 Second Ago
  • 46 Comments
      EB110Americana
      • 2 Years Ago
      I too was wondering what this would mean for the Yaris, as having both would seemingly be redundant. Perhaps it could alternately be an entry-level Scion model, as the xD and xB are getting a bit long in the tooth these days.
        icemilkcoffee
        • 2 Years Ago
        @EB110Americana
        That sounds about right. The Scion brand needs something that is good handling and lively. And different! The Mazda2 fits the bill. I think Toyota will continue selling the Yaris.
        Bruce Lee
        • 2 Years Ago
        @EB110Americana
        The Yaris is apparently one of the most reliable cars in the world right now, I wonder if Toyota would really replace it with something made by another manufacturer or if they would put another nameplate on it. I could see this being a new xD or something.
      Myself
      • 2 Years Ago
      Great news for Mazda!
      Snark
      • 2 Years Ago
      Fearless guess: this will be the Scion xD replacement.
        2o6
        • 2 Years Ago
        @Snark
        Or possibly the next Yaris model cycle (hopefully 3-4 years). The new Yaris isn't really new; it has new styling but everything else (even suspension members) are the same as the one before it.
      Andres Salazar Tello
      • 2 Years Ago
      I don't know why people say Mexican built is a bad thing, I don't think so, Totota Tacoma is built in Mexico, Ford Fusion, chevrolet suburban, and many more, even Audi will build here, and nevermind, factories are mostly automated, so quality has more to do with the company than with the country in which the car is built, every country can produce excelent quality product as they can build crap, look at every Apple product and it is built in china... and I don't see people complaining about that fact...
        The Wasp
        • 2 Years Ago
        @Andres Salazar Tello
        Andres, you're absolutely correct. There is a lot of anti-Mexican rhetoric in the US but few people really know the positives/negatives of manufacturing there, in the US, or anywhere else. @BB79826, what cars are you referring to? Also, given that you are talking VWs, compare and contrast with their build quality in the US and other countries.
        Dane Grant
        • 2 Years Ago
        @Andres Salazar Tello
        Ford Fusions are now built in the United States...
          DeathKnoT
          • 2 Years Ago
          @Dane Grant
          Not currently. Go to your ford dealer and check the vin on the 2013s. Production is in the process of moving.
        BB79826
        • 2 Years Ago
        @Andres Salazar Tello
        "look at every Apple product and it is built in china... and I don't see people complaining about that fact..." Uh, people complain about that all the time. Mexico gets a bad rap because of all of the horrible VWs that were built there in the late 90s/early 00s. That's all.
      Scr
      • 2 Years Ago
      Probably is the Yaris. The margins on importing a small cheap car just aren't there to have them built in France (or Japan for that matter) to warrant buiding them there. The huge new taxes in France, the spotty labor quality and quanity, and labor costs on a car like Yaris, you'd probably end up losing money. Since it will be on a Mazda platform Toyota does not have to pay to develop, and the labor costs are low in Mexico, and will be even lower by sharing production facilites, parts, and labor, it makes much more financial sense.
      Vergenbuurg
      • 2 Years Ago
      As a Mazda2 owner, I take this as good news that the 2 may just stick around on our market a bit longer... If they can retain the fun "eager puppy" (a term the dealer used, and I kinda like it and agree with it) handling of the 2's chassis for this new Toyota (or Scion, or whatever), that will be a huge boon to fans of sporty-handling on a budget :)
      johnnyboy
      • 2 Years Ago
      Toyota is tarnishing its name with all these partnership (Subaru and now Mazda). Subaru and Mazda are decent brands but they are not Toyota quality by any stretch.
        icemilkcoffee
        • 2 Years Ago
        @johnnyboy
        That's just not true- according to CR's survey, both Mazda and Subaru are up there in the first tier with Toyota.
        Yellowneck
        • 2 Years Ago
        @johnnyboy
        Have you driven a Mazda? The quality of a Mazda is better than the old Ford-esque American built Toyotas (Camry, Corolla). Check out the most recent JD Power scores to see customer responses in terms of vehicle quality, Mazda is right up there.
        jonnybimmer
        • 2 Years Ago
        @johnnyboy
        Mazda and Subaru are tarnishing Toyota's name? Sure you didn't get that the other way around? And the quality of these brands isn't like it was in the 90s, all three are pretty top notch (if you exclude Subaru's interiors)
      • 2 Years Ago
      [blocked]
        Phontsolo
        • 2 Years Ago
        You don't get the article much do you?
        • 2 Years Ago
        [blocked]
          The Wasp
          • 2 Years Ago
          How about next time you wait until someone offers to pay for your thoughts?
      The Wasp
      • 2 Years Ago
      Strange...I hope Mazda gets to do the bulk of the design instead of letting Toyota dictate.
      icemilkcoffee
      • 2 Years Ago
      Given that the Mazda2 has been a sales flop in the US, and the latest Yaris is not doing much better- this sounds like a dance of the lemons. 50,000 units a year is probably doable, but I am going to guess that half of that will have to come from Canada and Mexico.
        Phontsolo
        • 2 Years Ago
        @icemilkcoffee
        Where are you getting your "sales flop" info from exactly? If you look at the numbers on Mazda's own site the numbers are no where near "flop". More like respectable.
          Lunch
          • 2 Years Ago
          @Phontsolo
          I just bought a MS3 and talking to the salesman, they say the 2 is a massive failure. Big flop.
          2o6
          • 2 Years Ago
          @Phontsolo
          It's a flop. They're barely moving 1000 units a month. Yaris is double that, and both pale in comparison to other makes. As of the 1st of November - Mazda 2 YTD ~14,000 units. Yaris ~ 26,000 units. Compared to the Chevy Sonic ~70K units and Versa ~93K units.
      razorpit
      • 2 Years Ago
      Just think, after the next four years this thing is going to be a Limo compared to everything else...
      Vinuuz
      • 2 Years Ago
      I thought the plant was to make Mazda's cheaper and to meet demand in the States and Canada.. Now they want to build effin Toyotas?
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