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Toyota and Mazda to build $1.6bn United States plant

Toyota and Mazda to build $1.6bn United States plant

Toyota Motor Corp. and Mazda Motor Corp. are expected to announce Friday plans to build a $1.6 billion assembly plant in the USA that would create 4,000 jobs and be up and running by 2021, according to a person briefed on the plans.

Mazda does not have a plant in the USA, while Toyota produces about half of its cars there - a smaller ratio than Honda Motor, among other rivals.

Toyota spokesman Scott Vazin said the company would continue to make the Corolla at its MS manufacturing plant, as well, with no changes planned there. The Republican president also threatened to impose a hefty fee on Toyota if it were to build its Corolla cars for the USA market at a plant in Mexico.

The companies will begin to examine detailed plans with the goal of starting operations at the new plant in 2021.

Toyota had initially been planning to produce Corollas at its new $1bn plant currently under construction in Mexico, but this will now shift to the US.

Toyota often pulls from other plants in the world, including Japan and Turkey, to feed products to USA dealerships when supply of popular vehicles runs low. Toyoda denied that Trump's views influenced his decision.

The two companies aim to dodge criticism from the administration of U.S. President Donald Trump, which pledges to reduce huge trade deficits by accelerating domestic production and job creation.

Toyota said it would make the Corolla sedan at the factory instead of Mexico as previously intended.

But that fell short of the 10.3 million vehicles VW reported selling for a 3.8 percent bump.

On Wednesday, Foxconn said the Wisconsin plant "will be the first of a series of facilities we will be building in several states".

The cooperation between the two automakers will expand in such areas as production of vehicles at a joint plant in the United States, development of electric cars, connected-cars and advance safety technologies. "So this is an easy marriage for both parties". But recent breakthroughs in batteries allow for longer travel per charge.

Japanese rival Nissan Motor Co, which is allied with Renault SA of France and Mitsubishi Motors Corp, is the global leader in electric vehicles.

The Camry has been America's top-selling auto for 15 consecutive years, and has served as the company's flagship vehicle since 1982.

On Friday, Toyota Motor Corp. and Mazda Motor Corp. signed a deal to enter into an alliance.

Friday's announcement builds on an existing partnership.

All Corollas now sold in the US are made in Ontario, Canada or Mississippi.

The influence of technology firms in the industry has also grown with Google Inc. entering the race to develop automated auto technology while US electric vehicle maker Tesla Motors Inc.is showing rapid growth.

Mazda president and COE Masamichi Kogai said that he hopes, through the deal, to "help to energize the auto industry and create more vehicle fans by bringing together two competitive spirits". It is expected to create up to 4,000 jobs. Although, Ford cut its stake in Mazda in 2008.