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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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