Business

Toyota And Mazda To Set Up $1.6 Billion Plant In US, Creating 4,000 Jobs

Japanese-based auto manufacturers Toyota Motor Corp and Mazda Motor Corp are collaborating on a joint venture project to build a $1.6 billion assembly plant in the U.S., creating 4,000 jobs.

The plant, which will open in 2021, will have the capacity to assemble 300,000 vehicles, according to Reuters Friday. Production will be split between the two auto giants.

A location for the factory is yet to be determined. President Donald Trump tweeted about the news early Friday.

The two companies will work together on developing electric vehicle technologies as emission regulations compel automakers to invest in the technology. They will also collaborate on automated vehicle technology.

Toyota will produce its Corolla model, while Mazda will produce a new crossover at the new facility, according to the Wall Street Journal.

President Donald Trump has criticized Toyota for production plans in Mexico. Shortly before taking office, Trump tweeted an ultimatum to the company.

Toyota will own 5 percent of Mazda, and Mazda will own 0.25 percent of Toyota as a result of the agreement.

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