Toyota to take Stake in Mazda

Toyota Motor Corp. (NYSE: TM) announced plans to take a 5% share of Mazda Motor Corp as part of an alliance to build a $1.6 billion U.S. assembly plant and work on electric vehicles together. The plant is planned to produce 300,000 vehicles a year where production is to be divided amongst the two automakers and to employ about 4,000 people.

While Toyota takes a 5% share of Mazda, Mazda will take a 0.25% share of Toyota which will give them a production foothold in the U.S. R&D budget is around 140 billion yen ($1.27 billion) and Mazda lacks the funds to develop electric cars on their own. The two automakers plan to produce Toyota Corollas and a new Mazda SUV crossover at the new plant and will eventually build other cars including electric vehicles.

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