Toyota and Mazda has entered into an alliance that aims to further strengthen the partnership between the two Japanese automakers. The agreement preserves the independence and equality for both companies, but will allow them to synergize and advance future car products.

With this partnership, Toyota and Mazda have agreed to: establish a joint venture that produces vehicles in the United States (Corolla for Toyota and an undisclosed crossover for Mazda); jointly develop technologies for electric vehicles; jointly develop connected-car technology; collaborate on advanced safety technologies; and expand complementary products.

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.”

Apart from these collaborations, Toyota and Mazda have agreed to a capital alliance arrangement. 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.

This alliance between Mazda and Toyota is timely since the auto industry is facing even greater challenges including stricter environmental and safety regulations 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.