William Maley

A new report from Automotive News says BMW could be expanding their lineup of vehicles in both directions. On the low end is the 1-Series sedan. Already on sale in China, the model could be coming to U.S. in early 2019 according to a source. Previously, BMW said their small front-wheel drive sedan would not be sold in the U.S. But with Mercedes-Benz bringing the A-Class sedan to U.S. next year, this may have cause BMW to change their minds. A quick refresher, the 1-Series sedan is a front-wheel drive model. Moving over to the high-end, BMW is readying the 8-Series coupe to debut late next year. They have already shown a concept to give us an idea of what it may look like (to our eyes, it reminds us slightly of the Lexus LC coupe). It will be based on the 7-Series sedan, complete with the CLAR architecture. A convertible and Gran Coupe (4-door coupe) will be introduced at a later date. What will this mean for the 6-Series? Aside from the new 6-series Gran Turismo, expect the rest of the 6-Series family to fade away in the coming years. Some other bits of information from Automotive News' report, The X2 will go on sale sometime in the first quarter of 2018. It will be based on the X1 and feature coupe-like styling. BMW's 7-Seat X7 will debut next month at the Frankfurt Motor Show, but will not arrive to the U.S. until 2019. A new 3-Series will go on sale before the end of 2018 and use BMW's CLAR architecture. A concept electric version is expected to debut at Frankfurt. Source: Automotive News (Subscription Required) View full article

The upcoming Toyota Supra is considered to be one of the most highly anticipated vehicles to come out. It has also garnered a fair amount rumors, partly due to it sharing some bits with the next BMW Z4. But some leaked internal documents may dampen some of that anticipation. A member on the Supra MKV forums obtained a BMW model code document listing out the various combinations for the upcoming Supra and Z4, along with which market they will appear on. For the Toyota, the document shows that it will be offered with the 30i and 40i engines. This likely means the Supra will get BMW's 2.0L turbo-four (248 horsepower) and 3.0L turbocharged inline-six (335 horsepower). Interestingly, none of Toyota variants list a manual transmission. They all appear to be hooked up to an automatic. Compare it to list of BMW models where there appear to be some manual options. Before you start panicking about the missing manual, the document is a few months and what is listed may change. So for right now, take a deep breath and wait patiently for BMW and Toyota to reveal the models. Source: Supra MKV View full article

The Volkswagen Passat isn't the most exciting sedan to look at. But the German automaker injected some style and sport with the Passat GT Concept at last year's LA Auto Show. It took some design ideas from the Golf GTI - black grille with red accent lines and a more aggressive body kit - along with new wheels. Volkswagen also lowered the suspension and added a sport exhaust system. Volkswagen didn't go crazy with the engine - it is the same 3.6L VR6 found in the standard Passat. According to a new report from Digital Trends, Volkswagen is bringing the Passat GT into production. A spokesperson tells the outlet the production GT will closely resemble the 2016 concept. This will likely mean it will also come with the sports tuned suspension and VR6 engine. No timeframe was given as to when Volkswagen will show off the Passat GT. Source: Digital Trends View full article

When Tesla finally revealed the Model 3 a couple weeks, we learned about a number of items such as max range (220 or 310 if you opt for the larger battery), how fast they hit 60 mph, and what will come standard. What wasn't talked about was how big the battery was and power figures. Thanks to some EPA documents, we have some idea on both. InsideEVs found some preliminary documents dealing with the long-range Model 3 and figured out that has an 80.5-kilowatt-hour battery pack - the document says it is a 230 Ah battery pack with 350 V nominal voltage. We should note that CEO Elon Musk has said previously that the Model 3 could not take anything larger than a 75-kWh battery. But, InsideEVs says Musk could have been referring to useable, not the max capacity of the pack. We also have learned that the long-range Model 3 produces 258 horsepower. Sadly, no torque figure was given in the documents. Source: InsideEVs View full article

If you want to get your hands on a Jeep Grand Cherokee Trackhawk, be prepared to pony up a huge chunk of cash. When the order books open up on August 10th, the Trackhawk will set you back $86,995 - includes a $1,095 destination charge. Jeep's monster features the supercharged 6.2L Hellcat V8 with 707 horsepower and 645 pound-feet of torque. This engine propels the Trackhawk to 60 mph in 3.5 seconds and the quarter mile is finished in 11.6 seconds at a speed of 116 mph. Top speed is said to be 180 mph. Power goes through a toughened TorqueFlite eight-speed automatic transmission and all-wheel drive. “The 2018 Jeep Grand Cherokee Trackhawk delivers astounding performance numbers, backed by renowned SRT engineering that combines world-class on-road driving dynamics with luxury, refinement and an array of innovative advanced technology,” said Mike Manley, Head of Jeep Brand in a statement. “As the most powerful and quickest SUV, there is nothing else like the Grand Cherokee Trackhawk in the market, and with its starting price of $85,900, there is no better value for a high-performance SUV.” Standard equipment includes 20-inch titanium-finished wheels, Brembo brakes, adaptive Bilstein dampers, and a limited-slip rear differential. Source: Jeep Press Release is on Page 2 Jeep® Announces Pricing for 2018 Grand Cherokee Trackhawk: Most Powerful and Quickest SUV Ever Grand Cherokee Trackhawk starts at $85,900 U.S. Manufacturer’s Suggested Retail Price Customers can order the new Grand Cherokee Trackhawk on Aug. 10 at their local Jeep® dealer Most powerful SUV ever: supercharged 6.2-liter V-8 engine delivers 707 horsepower and 645 lb.-ft. of torque Quickest SUV ever: 0-60 miles per hour (mph) in 3.5 seconds, quarter mile in 11.6 seconds and top speed of 180 mph Upgraded TorqueFlite eight-speed automatic transmission and driveline components engineered to handle additional torque output New Brembo braking system includes largest-ever front brakes on a Jeep vehicle and delivers 60-0 mph braking performance of 114 feet World-class on-road driving dynamics: five drive-mode Selec-Track system and Bilstein adaptive damping suspension Aggressive, functional exterior appointments include unique quad-tip exhaust and redesigned fascia that optimizes airflow and cooling New standard 20 x 10-inch Titanium-finish wheels expose distinctive yellow Brembo brake calipers 2018 Jeep Grand Cherokee Trackhawk will arrive in showrooms in the fourth quarter of 2017 August 8, 2017 , Auburn Hills, Mich. - Injected with an unmatched 707 horsepower – courtesy of an awe-inspiring supercharged 6.2-liter V-8 engine – the most awarded SUV ever and the most capable full-size SUV on the planet has been transformed into the most powerful and quickest SUV ever. Built in Detroit at the Jefferson North Assembly Plant, the new 2018 Grand Cherokee Trackhawk will arrive in Jeep® showrooms in the fourth quarter of 2017 with a starting U.S. Manufacturer’s Suggested Retail Price (MSRP) of $85,900, excluding $1,095 destination. Customers can place orders at their local Jeep dealer beginning Aug. 10. “The 2018 Jeep Grand Cherokee Trackhawk delivers astounding performance numbers, backed by renowned SRT engineering that combines world-class on-road driving dynamics with luxury, refinement and an array of innovative advanced technology,” said Mike Manley, Head of Jeep Brand – FCA Global. “As the most powerful and quickest SUV, there is nothing else like the Grand Cherokee Trackhawk in the market, and with its starting price of $85,900, there is no better value for a high-performance SUV.” The new benchmark 707-horsepower supercharged engine combines with an upgraded high-torque capacity TorqueFlite eight-speed automatic transmission, world-class on-road driving dynamics and new Brembo brakes to deliver a new level of performance: 0-60 miles per hour (mph) in 3.5 seconds, quarter mile in 11.6 seconds at 116 mph, top speed of 180 mph, 60-0 mph braking distance in 114 feet and .88g capability on the skid pad. As the most powerful and quickest SUV ever, the 2018 Jeep Grand Cherokee Trackhawk is packed with standard performance features, including: Supercharged 6.2-liter V-8 engine that delivers 707 horsepower, 645 lb.-ft. of torque and 3.5-second 0-60 mph times TorqueFlite eight-speed automatic transmission that delivers improved shift response, quality and consistent performance and drivability Jeep Quadra-Trac on-demand four-wheel-drive system, which includes an electronic limited-slip rear differential and a single-speed active transfer case Launch Control that optimizes the Grand Cherokee Trackhawk’s performance by coordinating the engine, transmission, driveline and suspension for a textbook launch and consistent straight-line acceleration Selec-Track system, which uses performance-tuned software to pre-configure and distinguish the five dynamic modes (Auto, Sport, Track, Snow and Tow), enabling drivers to choose a vehicle setting that ideally meets their requirements and ambient conditions 7,200-pound towing capability New high-performance Brembo braking system, with a new distinctive yellow finish, that includes the largest standard front brakes ever offered on a Jeep vehicle and delivers 60-0 mph braking performance of 114 feet One-inch lower ride than non-SRT Grand Cherokee models Sculpted hood with dual heat extractors Omitted fog lights from the Trackhawk’s front fascia to optimize airflow to cooling modules and air induction without compromising the vehicle’s balance “Supercharged” badge on both front doors and a Trackhawk badge on the liftgate that features a Liquid Titanium Chrome outline and Matte Black background New standard 20 x 10-inch Titanium-finish wheels with a Satin Chrome center cap All-new Pirelli 295/45ZR20 Scorpion Verde all-season and new Pirelli P Zero three-season tires with an increased speed rating Unique Gloss Black rear valance that showcases four-inch Black Chrome quad exhaust tips, while new quad exhaust system design provides an exhilarating and unmistakable note during maximum acceleration Driver-focused interior that features premium soft-touch materials, unique Light Black Chrome finishes and carbon fiber spears, and a 7-inch driver information display (DID) instrument cluster with the tachometer in the middle New Uconnect 4 system with 8.4-inch display that features Trackhawk-exclusive Performance Pages that showcase an array of performance timers and gauge readouts Three-spoke steering wheel with a flat-bottom that features a bevy of comfort, convenience and connectivity controls and ergonomically efficient paddle shifters Premium Metal Package that enhances the Trackhawk’s interior with various upscale real metal accents Available options include dual-pane panoramic sunroof, three-season tires, lightweight 20 x 10-inch forged aluminum Low Gloss Black wheels, fully wrapped Signature Leather Interior Package in Black or Black/Dark Ruby Red, 19-speaker Harman Kardon high-performance audio system, dual-screen rear-seat entertainment center with Blu-ray, trailer tow package and Dark Ruby Red seatbelts. The 2018 Jeep Grand Cherokee Trackhawk is available in nine exterior colors: Billet Silver, Granite Crystal, Diamond Black, Ivory Tri-coat, Bright White, Velvet Red, Rhino (exclusive), Redline 2 (exclusive) and True Blue. View full article

Mazda could do something that no other automaker has been able to do, introduce a homogeneous charge compression ignition (HCCI) engine for a production model. Today in Tokyo, Mazda held a news conference announcing their Sustainable Zoom-Zoom 2030 initiative. The gist is to improve overall efficiency while retaining the fun-to-drive nature of their vehicles. The big announcement during this news conference is the introduction of the Skyactiv-X engine which features HCCI - something we first heard about back in January. HCCI engines are like diesel engines where they use compression and not spark to ignite the fuel. This allows for better fuel economy and emissions. But automakers could never figure out how to control when the gasoline ignites. HCCI engines need to run at a specific temperature for smooth operation. If the engine is too cold, the performance of the compression ignition is affected. Too hot and you'll have engine knock. Mazda says they have figured out a solution to these issues by using spark plugs to ignite the fuel in certain situations such as cold starts. Skyactiv-X will also feature a supercharger that will provide a smooth and immediate engine response. The new engines will see a 10 to 30 percent increase in torque over the current Skyactiv engines. As for efficiency, Mazda says Skyactiv-X will see a 20 to 30 percent increase. There are other parts to Mazda's Sustainable Zoom-Zoom 2030 initiative, not all of it dealing with efficiency. Introducing electrified models, including electrics beginning in 2019. They'll be offered in places "that use a high ratio of clean energy for power generation or restrict certain vehicles to reduce air pollution." Work on reducing the “well-to-wheel” carbon dioxide emissions (from building the vehicle to driving it). Cut back on the corporate“well-to-wheel” carbon dioxide emissions to 50 percent of 2010 levels by 2013, and reducing that to 10 percent by 2050. Add more advanced safety tech and work on the fundamentals such as driving position and visibility. Begin introducing autonomous driving tech by 2025 Source: Mazda Press Release is on Page 2 MAZDA ANNOUNCES LONG-TERM VISION FOR TECHNOLOGY DEVELOPMENT, ‘SUSTAINABLE ZOOM-ZOOM 2030’ INTRODUCES SKYACTIV-X, WORLD’S FIRST COMMERCIAL GASOLINE ENGINE TO USE COMPRESSION IGNITION August 8, 2017 HIROSHIMA, Japan—Mazda Motor Corporation today announced “Sustainable Zoom-Zoom 2030,” a new long-term vision for technology development that looks ahead to the year 2030. As part of the new technology to achieve this vision, the company disclosed plans to introduce a next-generation engine called SKYACTIV-X in 2019. SKYACTIV-X will be the world’s first commercial gasoline engine to use compression ignition.1 Under the original “Sustainable Zoom-Zoom” vision announced in 2007, the company has striven to offer both driving pleasure and outstanding environmental and safety performance. In light of the rapid changes taking place in the automotive industry, the new vision takes a longer-term perspective and sets out how Mazda will use driving pleasure, the fundamental appeal of the automobile, to help solve issues facing people, the earth and society. The following is an overview of “Sustainable Zoom-Zoom 2030” and the next-generation SKYACTIV-X engine. 1. SUSTAINABLE ZOOM-ZOOM 2030 Mazda believes its mission is to bring about a beautiful earth and to enrich people’s lives as well as society. The company will continue to seek ways to inspire people through the value found in cars. Earth Through conservation initiatives, create a sustainable future in which people and cars coexist with a bountiful, beautiful earth Mazda’s approach Expand measures for carbon dioxide reduction from a “well-to-wheel” perspective, considering emissions over the vehicle’s entire life cycle Aim to reduce corporate average “well-to-wheel” carbon dioxide emissions to 50 percent of 2010 levels by 2030, and achieve a 90-percent reduction by 2050 Achieve this with a policy prioritizing efficiency improvements and measures for cleaner emissions that apply in the real world In line with this policy, continue efforts to perfect the internal combustion engine, which will help power the majority of cars worldwide for many years to come and can therefore make the greatest contribution to reducing carbon dioxide emissions, and combine the results with effective electrification technologies From 2019, start introducing electric vehicles and other electric drive technologies in regions that use a high ratio of clean energy for power generation or restrict certain vehicles to reduce air pollution Society Through cars and a society that provide safety and peace of mind, create a system that enriches people’s lives by offering unrestricted mobility to people everywhere Mazda’s approach Develop more advanced safety technologies under the Mazda Proactive Safety philosophy, working toward the goal of eliminating traffic accidents Further enhance safety fundamentals, such as correct driving position, pedal layout and good visibility, and standardize them across all models Promote further standardization of i-ACTIVSENSE advanced safety features, which help drivers recognize and assess potential hazards; in addition to Japan, where they are already becoming standard, gradually make these technologies standard in other markets starting in 2018 Begin testing of autonomous driving technologies currently being developed in line with Mazda’s human-centered Mazda Co-Pilot Concept2 in 2020, aiming to make the system standard on all models by 2025 Using connectivity technologies, create a new business model that enables car owners to support the needs of people in depopulated areas and those who have difficulty getting around People Enhance customers’ mental well-being with the satisfaction that comes from protecting the earth and contributing to society with a car that offers true driving pleasure Mazda’s approach Pursue an enhanced Jinba-ittai driving feel that will unlock people’s potential and revitalize them mentally and physically Based on the philosophy of “breathing life into the car,” further develop KODO design to raise vehicle design to the level of art that enriches the emotional lives of all who see it 2. SKYACTIV-X NEXT-GENERATION ENGINE Technological innovations SKYACTIV-X is the world’s first commercial gasoline engine to use compression ignition, in which the fuel-air mixture ignites spontaneously when compressed by the piston A proprietary combustion method called Spark Controlled Compression Ignition overcomes two issues that had impeded commercialization of compression ignition gasoline engines: maximizing the zone in which compression ignition is possible and achieving a seamless transition between compression ignition and spark ignition. Features This new proprietary combustion engine combines the advantages of gasoline and diesel engines to achieve outstanding environmental performance, power and acceleration performance. Compression ignition and a supercharger fitted to improve fuel economy together deliver unprecedented engine response and increase torque 10–30 percent over the current SKYACTIV-G gasoline engine.3 Compression ignition makes possible a super lean burn4 that improves engine efficiency up to 20–30 percent over the current SKYACTIV-G, and from 35–45 percent over Mazda’s 2008 gasoline engine of the same displacement. SKYACTIV-X even equals or exceeds the latest SKYACTIV-D diesel engine in fuel efficiency. With high efficiency across a wide range of rpms and engine loads, the engine allows much more latitude in the selection of gear ratios, providing both superior fuel economy and driving performance. Moving forward Mazda hopes to help create a future in which people, the earth and society can coexist with cars, to enrich people’s lives through a car ownership experience that celebrates driving, and to become a brand with which customers feel a strong emotional connection. View full article

Last month, electric vehicle start-up Faraday Future halted construction on their $1 billion production facility in North Las Vegas. At the time, FF said they would be looking into purchasing or leasing a production facility in either California or Nevada to get production of the FF 91 up and running. Today, Faraday has announced they have leased a factory in Hanford, California - about 200 miles north of their headquarters in Los Angeles. The facility is million-square-feet and the company is planning on employing close 1,300 people once production is up and running. “Our new production facility is the latest demonstration of our commitment to getting FF 91 on the road by the end of 2018. Despite significant head winds on the path ahead of us, we are laser-focused on that one key milestone,” said Dag Reckhorn, Faraday Future’s VP of Global Manufacturing in a statement. The Verge has some more details about this facility. Originally, the facility was owned by tire manufacturer Pirelli up until 2001. Since then, various land owners have leased out small parts of the facility to small businesses. How did Faraday Future pay for the lease? The company has been dealing with a number of money problems. According to the Wall Street Journal this weekend, Faraday got a $14 million rescue loan from New York investment firm Innovatus Capital Partners. Reportedly, the company put up their headquarters as collateral. Source: Faraday Future, The Verge, Wall Street Journal (Subscription Required) Press Release is on Page 2 Faraday Future Reveals New California Manufacturing Facility LOS ANGELES, August 07, 2017 – Faraday Future (FF) has signed a lease on its new manufacturing facility, and began the process of clean-up to prepare the new site for the move-in of manufacturing equipment. The facility marks another significant step forward for the company in delivering its first production vehicle, FF 91, to market by the end of 2018. Faraday Future had recently announced that it was shifting its manufacturing focus to a turn-key facility that offers a faster path to production. The new production facility, located in Hanford, CA, is strategically located between the country’s two largest EV markets, Los Angeles and Silicon Valley. “We know there is a lot of work and risks ahead, but this event represents a major step forward for the company,” said Stefan Krause, COO/CFO, Faraday Future. “Investors invest in people, and our employees continue to be Faraday Future’s strongest asset. As we begin this next phase in our company’s history, our efforts to build out strong corporate leadership will bring a new focus to Faraday Future and deliver on our commitments to employees, investors, suppliers, and future users, who have shown exceptional patience and resilience through the company’s difficult times.” On August 5, more than 300 Faraday Future employees and supporters voluntarily drove from Los Angeles to Hanford to begin the process of site clean-up, and embrace the company’s new manufacturing home. State of California, and City of Hanford and Kings County officials were also on-site to welcome Faraday Future to its new production facility. “The future of zero emission production is in California,” added Panorea Avdis, Director of the Governor’s Office of Business and Economic Development. “Faraday Future’s announcement today is another step towards realizing Governor Brown’s goal of adding one and a half million zero emission vehicles on the road by the year 2025. When Faraday Future achieves its goals, the State of California achieves ours, and our office will continue to assist the company’s needs to grow and expand, as we have from day one.” Dag Reckhorn, Faraday Future’s VP of Global Manufacturing is spearheading all strategy and execution behind the new Hanford site. “Our new production facility is the latest demonstration of our commitment to getting FF 91 on the road by the end of 2018,” said Reckhorn. “Despite significant head winds on the path ahead of us, we are laser-focused on that one key milestone.” Under Faraday Future’s new leadership team, helmed by Krause (former CFO and board member of Deutsche Bank and BMW Global CFO) and Ulrich Kranz (former Sr. Vice President at BMW, responsible for the successful launch of i8, i3, Z3, and X5) in their roles as COO/CFO and CTO, respectively, the company is driving strategic changes to get Faraday Future investible. This new production facility establishes the best path forward for the company’s manufacturing plans, and focuses on building out the company’s network of investors to diversify FF’s funding strategy. After Saturday’s event, Faraday Future will continue the process of site preparations, including planning, refurbishment, and permitting. Following the move-out of current tenants in late November, the company expects significant movement to ramp-up on site in early 2018. Faraday Future’s new manufacturing facility is 1M sq. ft., and will employ up to 1,300 workers, over 3 shifts, over time. View full article

More information is spilling out on the 2018 Jeep Wrangler. A member of the JL Wrangler Forums has gotten images from the FCA dealer system which now features the 2018 Wrangler along with a litany of options. One of those options is a full-time four-wheel-drive system called Selec-Trac. If history any indication, the Selec-Trac system will likely offer a low-range mode like on the 2008 to 2012 Liberty. Before you start grabbing the pitchforks and torches, Selec-Trac will only be available on the Sahara. We also have gotten an interesting tidbit on the 2.0L turbo-four. It will come with a "Belt Start Generator" system. We're guessing this will be used with a stop-start system to save fuel. Source: JL Wrangler Forums View full article

Back in January, we reported on the rumor that Mazda was planning to launch a Homogeneous charge compression ignition (HCCI) engine for the 2018 Mazda3. HCCI engines are unique as they use compression, not spark to ignite gasoline. This will improve fuel economy and emissions. But the thing about HCCI engines is that automakers will produce prototypes and say they'll be coming within the new few years, and then nothing happens. We have some new details about Mazda's plan to debut their new HCCI engine. According to Motoring, Mazda will debut the engine at a technology forum in Frankfurt later this month. Reportedly, the engine will feature spark plugs to ignite the fuel at low rpms. Compression ignition will take place at higher rpms. Following this, Mazda will be showing off a concept at the Tokyo Motor Show in October. The concept will preview the next Mazda3 and possibly feature the new engine. The next Mazda 3 is expected to be revealed next year as a possible 2019 model year vehicle. Source: Motoring View full article

Mazda and Toyota announced today a new alliance that will strengthen their current partnership and see the two collaborate on a number of projects. The big news is a new, $1.6 billion joint-venture assembly plant for the U.S. The location hasn't been revealed, but it will produce Corollas and Mazda crossovers. The plant is expected to open in 2021 and produce up to 300,000 vehicles per year. The other big news deals with the two forming a shared capital structure. Toyota will acquire 5.05 percent into Mazda, and Mazda will get 0.25 percent of Toyota. The two will also work together on developing electric vehicles and various safety technologies. Additionally, Mazda and Toyota will “explore the possibilities of other complementary products on a global level.” “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities,” said Toyota President Akio Toyoda in a statement. Source: Mazda, Toyota Press Release is on Page 2 Toyota and Mazda Enter Business and Capital Alliance Signed agreement marks start of concrete collaboration aimed at creating new types of value for future mobility and achieving further sustainable growth TOKYO, August 4, 2017 - Toyota Motor Corporation (Toyota) and Mazda Motor Corporation (Mazda) signed an agreement today to enter a business and capital alliance, with the aim of further strengthening their lasting partnership. Today’s agreement is a testament to the positive result of two years of collaborative and deliberate discussions between the two companies, and it is a milestone in the journey to further strengthen and accelerate the partnership in a sustainable way. Specifically, the companies agreed to: 1) establish a joint venture that produces vehicles in the United States, 2) jointly develop technologies for electric vehicles, 3) jointly develop connected-car technology, 4) collaborate on advanced safety technologies and 5) expand complementary products. In addition, together with the aim of advancing and strengthening their long-term collaboration, Toyota and Mazda agreed to a capital alliance arrangement that preserves independence and equality for both companies. In the capital tie-up, the two companies have agreed that Toyota will subscribe for and acquire shares to be newly issued by Mazda through a third-party allotment, and at the same time Mazda will subscribe for and acquire third-party allocation shares of treasury stock disposed of by Toyota in the equivalent amount in value to the Mazda shares. The value of the shares mutually acquired by both companies will be equivalent. Marking the agreement, Toyota President Akio Toyoda said: “The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyota’s competitive spirit, increasing our sense of not wanting to be bested by Mazda. This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities.” Representing Mazda, President and CEO Masamichi Kogai said: “Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders.” The auto industry increasingly faces great challenges, including stricter environmental and safety regulations for new vehicles and the entrance of competitors from other industries, as well as the diversification of mobility-related businesses. With the future of the industry in mind, in addition to leveraging their individual strengths to further improve technologies and reinforce their business foundations, Toyota and Mazda aim to deepen collaboration and achieve sustainable growth through their partnership, rising to face and overcome these pressing challenges. On May 13, 2015, Toyota and Mazda entered an agreement to build a continuous partnership that would mutually benefit the companies in such forms as leveraging the resources of both companies and complementing each other’s products and technologies toward the goal of making more-appealing cars. Since then, both companies have discussed various areas to explore, based on the principle of building an equal and favorable relationship in the long term. Over the medium- to long-term, the two companies will build a favorable relationship that respects the autonomy and equality of each party and works toward success with the agreed joint projects. With the aim of creating new types of value for future mobility, they will accelerate and enhance bilateral cooperation as long-term partners and contribute to the development of a sustainable society by exceeding customers’ expectations. Details of the agreement on business alliance 1) Establish a joint venture that produces vehicles in the U.S. As part of the new alliance, Toyota and Mazda have agreed to explore establishing a joint venture plant in the U.S. with equal funding contributions. The plant would have an estimated annual production capacity of approximately 300,000 units. Pending approvals and authorization by relevant government agencies, the companies will begin to examine detailed plans with the goal to starting operations of the new plant in 2021. The plant will require a total investment of approximately 1.6 billion U.S. dollars, and will create up to 4,000 jobs. In addition to the collaboration in product and technology areas that the companies have enjoyed thus far, Toyota and Mazda intend to improve competitiveness in manufacturing through this new production collaboration. At the new plant, Mazda expects to produce cross-over models that Mazda will newly introduce to the North American market, and Toyota plans to produce the Corolla for the North American market. By producing vehicles in the U.S., Mazda aims to build a production structure to further grow in North America. These activities will allow the company to more quickly respond to its customers’ needs depending on the region and model. By further increasing its production capacity in the U.S., Toyota is to further pursue management that is closer to the region, as a measure to improve its response to the growing North American market. At Toyota’s new plant in Guanajuato, Mexico, which is currently under construction, Toyota plans to produce the Tacoma, instead of the Corolla. There will be no substantial impact on Toyota’s investment and employment plan there. 2) Jointly develop technologies for electric vehicles With increasing demand and expectations for electric vehicles worldwide, Toyota and Mazda are to explore joint development of technologies for the basic structure of competitive electric vehicles, mobilizing and exchanging expertise freely and actively. These technologies will allow the companies to respond quickly to regulations and market trends in each country. Specific details of the collaboration will be determined as the companies work together going forward. 3&4) Jointly develop connected technology and collaborate on advanced safety technologies Toyota and Mazda will work together to jointly develop technologies for onboard multimedia infotainment systems in preparation for increased use of in-car information technologies and the increasing demand for connected technologies. In addition, Toyota will cooperate with Mazda in Toyota’s vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies with the ultimate goal of creating a mobile society devoid of accidents. 5) Expand complementary products Currently, Mazda is supplying a compact sedan to Toyota in North America. In addition, Toyota is to supply a compact commercial “two-box” van to Mazda in Japan. Beyond this, the companies will further explore the possibilities of other complementary products on a global level. Details of the capital alliance Based on the agreement, the companies will aim to develop sustainable collaboration, maximizing the synergies of the business and capital alliance by mutually acquiring shares as stated below. Toyota will acquire 31,928,500 shares of common stock newly issued by Mazda through a third-party allotment (shareholding ratio of 5.05% on an issued share basis after the capital increase; total value of 50 billion yen). Mazda will, through a disposition of treasury stock through a third-party allotment to be implemented by Toyota, acquire Toyota shares that are equivalent in value to the Mazda shares (shareholding ratio of 0.25% on an issued share basis). The two companies plan to apply proceeds from the capital increase through the third-party allotment and the disposition of treasury stock through the third-party allotment to fund, in part, capital expenditures relating to the establishment of the joint venture to produce vehicles in the U.S. Both companies are to consider strengthening their capital alliance further, in line with the progress of their business alliance. View full article