It’s no secret that the auto industry is in an era of massive flux, and some automakers are adapting better than others. With EVs changing the market in many places around the world, even some of the largest automakers are struggling. Mazda is one of the smaller players in the game, and it’s difficult to keep up.
Competitor Cooperation
Mazda and Toyota are ostensibly rivals, with many of their models directly competing. However, recently, the Japanese automakers have been teaming up on various new products. They’ve even started a joint venture assembly plant in Alabama. According to the Mazda CEO, it might just be the start of continued cooperation.
Masahiro Moro revealed that the two automakers are collaborating due to increasing global competition. With software-defined vehicles and EV models becoming the norm, companies have to pursue many things at the same time. Moro explained that internal combustion allowed manufacturers to maintain complete autonomy. However, hybrids and electric motor drive systems are almost exactly the same.
In some sense, the automotive industry is transforming into a mobility industry. That changes the game, and companies need to help each other to conserve resources.
What We Know About the Joint Mazda Toyota Factory
While you may not see any new Toyota models at your Mazda dealer, the companies are cooperating behind the scenes. One of the ways they’re doing that is with the joint Mazda-Toyota factory in Alabama. The automakers started working together in 2017 with some joint products. You may not know that the Mazda CX-50 Hybrid and the Toyota Corolla Cross Hybrid were jointly developed by Toyota and Mazda.
Both models are being produced at the Mazda Toyota Manufacturing factory in Huntsville, Alabama. That factory opened in 2023 to the tune of $2.3 billion. It’s still in the phase of ramping up with only two shifts. It produced roughly 100,000 vehicles last year. Mazda hopes to boost that to 150,000 in the near future.
Toyota Helps Mazda Avoid Tariffs
Mazda’s newly expanded lineup and the ability to produce vehicles in America are paying off. The automaker saw its sales grow in the US market by 16.8%. Comparatively, its global volume grew by about 2.6%. The American plant gives Mazda more product to sell, and it also helps it avoid the Trump import auto tariffs. The new trade sanctions went into effect on May 3.
Will Toyota Take Mazda Over?
Increasing US production is just one part of the puzzle, but Mazda expects that changing parts suppliers will take some time. In the meantime, Mazda is evaluating its priorities and timeframe. The relationship with Toyota adds opportunities as well. Will the larger automaker eventually absorb Mazda? According to the Mazda CEO, this isn’t on the table.
In the past, Toyota was always reluctant to forge any partnerships with other automotive companies unless it was absolutely necessary. For example, Toyota partnered with GM in the 1980s to get started on American manufacturing. At this time, Toyota also acquired smaller automakers like Daihatsu and Hino.
These days, Toyota is much more likely to forge alliances, including those with Subaru and Mazda.
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