Toyota and Mazda have announced that Mazda’s plant in Mexico, currently under construction, will produce a Toyota-brand vehicle for sale mainly in North America. The sub-compact Toyota-brand vehicle, to be based on the Mazda 2, is to start production around the summer of 2015 at a pace of 50,000 units per year and will be sold through Toyota dealerships. The move will allow Toyota, the largest car company in Japan, to further increase its strong grip on the North American market, as well as give Mazda some much-needed support from an ally.
Mazda is no stranger to corporate cooperation as it once relied on Ford to build and share some models; It was only about a year ago that Ford dumped its ownership stake in Mazda, ending their joint development. It’s interesting that Mazda has found a new suitor relatively quickly. The Mexican arrangement is a win-win for both companies. For Mazda, it assures the company that the plant will reach full capacity. For Toyota, the new model will be based on a popular platform, one that clearly outperforms it own subcompact.
Toyota can avoid the costs of developing an all-new model by selling one based on a proven winner. We don’t know if this vehicle will be a re-badge or come with fresh sheet metal and a unique interior. Usually when companies re-badge products, they give the vehicle a slightly different exteriors appearance, which helps in differentiation. The Mazda 2 is not scheduled for India anytime soon, nor is the Toyota vehicle based on the Mazda 2 on the horizon for the Indian market.