5) Together both brands appear to be acting on Trump’s threatened import tax
Building cars in the US for the US will help the brand’s growth as per stated from Mazda’s point of view. On the other hand, as Mazda largely builds cars in Mexico and Japan, it should help the brand save some dose when it comes to the threat of more import duties threatened by current US President, Donald Trump, too.
Corolla manufacturing in the US should also take some of the tingle off the possible import tax for Toyota, too, as it’s one of the brand’s bestsellers across the pond, alongside the RAV4 and Camry.
In reality, the plan has been put the two car giants into the good books of His Trumpness:
Toyota & Mazda to build a new $1.6B plant here in the U.S.A. and create 4K new American jobs. A great investment in American manufacturing!
— Donald J. Trump (@realDonaldTrump)
6) They will possess a piece of each other…
The brands will be mutually sharing an equal amount of share in each other. Toyota is buying approximately 32 million recently issued common stock shares to the tune of 50 billion yen (£345m) whereas Mazda is taking on some of Toyota’s treasury stock that’s corresponding in value. The capital obtained will go towards setting up the joint venture.
7) …However the brands will still remain separate!
This grouping doesn’t signify that both brands are now in the state of symbiosis. There is a pressure in the proclamation that there will be independence in both brands in spite of the co-operation: ‘over the medium- to long-term, the two companies will build a constructive relationship that compliments the autonomy and equality of each member.’
