Toyota, Mazda Partner to Build New Plant

Toyota and Mazda have entered into an agreement in which the former will take a 5 percent stake in the latter, with the most significant outcome being a new $1.6 billion U.S. production facility that will produce as many as 300,000 vehicles a year. Production would begin in 2021.

According to Reuters, the new facility could employ as many as 4,000 people. The surprise announcement Aug. 4 did not reveal where the automakers plan to build the plant or what vehicles are likely to be built there. However, given the fact that dealers have been clamoring for more mid-size Toyota Tacoma pickup trucks, it wouldn't surprise us if at least part of the plant is used to produce more Tacomas.

According to Automotive News (subscription required), Toyota has been looking for a way to combat the increased Tacoma competition from the Chevrolet Colorado, GMC Canyon and Honda Ridgeline. Additionally, a new Ford Ranger and Jeep pickup are set to enter the market in less than two years.

Currently Toyota's San Antonio plant is running at full tilt — building quite a few more Tacomas than Tundras — and its Mexico production plant is in the midst of production-expanding construction that will not be finished until early next year.

Cars.com photo above by Mark Williams; Manufacturer image below