By on November 9, 2012

Based on the Mazda2, Mazda will build a sub-compact for Toyota after Mazda’s new plant in Mexico opens, the company says. The new (Mazota?) will start production around the summer of 2015 at a pace of 50,000 units per year, Toyota says.

This is helpful for both sides. Toyota’s production capacities in North America are working at the limit. Toyota can get a brand new model with loved technology without inordinate development costs.

Cash-strapped Mazda gets financial assistance from Toyota which will pay for a portion of production equipment costs, development costs related to the Toyota vehicle, in addition to a portion of costs related to the plant’s production-capacity increase. Everybody happy.

Mazda’s plant in Mexico is scheduled to start production within the fiscal year ending March 2014, No other information was available on Friday evening in Tokyo. Maybe later.

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24 Comments on “Toyota Nudges Closer To Mazda. Mazda To Build Toyota Car For U.S....”


  • avatar

    I think the 64.000 dollar question is, who will be buying these Cars? Small vehicles have never been a good “seller” in the USA!

    • 0 avatar
      Cammy Corrigan

      The car is being built in Mexico. Mexico has Free Trade Agreements with many markets. This car could be shipped to many other markets than just the United States. Herr Schmitt may feel slightly vindicated about how freer trade increases investment and jobs. But I’ll let him speak for himself….

      http://en.wikipedia.org/wiki/Foreign_relations_of_Mexico#Free_trade_agreements

    • 0 avatar
      mcs

      “who will be buying these Cars?”

      I agree with Cammy. As for the US, it’s a growing market for mini cars. Compare where we were in numbers in 2001 compared with now. Also, take a look at this GM release regarding the Spark.

      From a September 2012 GM release http://goo.gl/mOq6J :

      “Launched in Korea in 2009 and now available in almost every country in the world, the Spark’s journey to the U.S. market is in response to the recent popularity of mini cars among U.S. consumers. The Spark has sold more than 600,000 vehicles globally, and is gaining momentum with American drivers. It was the fastest-selling vehicle in July 2012 with an average four days-to-turn – the time from its arrival on a dealer lot to sale to a customer. “

    • 0 avatar
      L'avventura

      This is what is a bit confusing. B-segment cars are poor sellers as you say. Honda too made a comment on the next-gen Fit to be made in Mexico, that they expect 4 times the sales over what they get currently.

      The question becomes; do these automakers expect a dramatic increase in the cost of gasoline in the next few years that would drive B-segment car sales?

      Secondly, Toyota seems to be striking a lot of deals with the smaller Japanese brands. Toyobarus, Mazotas, etc.

      Yet another question becomes; will Toyota & Mazda share development, platforms, and engines between the Mazda 2 and what may be the next-Yaris? SkyActiv Toyotas? Mazda using Toyota V6 engines to replace Ford’s Duratec?

      There is a rumor that the next Mazda3 will have a hybrid version with a 1.3L SkayActiv engine mated with a THSII hybrid system from Toyota. A potent combination as even the Prius (with a larger displacement) doesn’t have direct injection systems much less a high-compression ratio one like Mazdas.

      • 0 avatar
        wmba

        The Prius engine has a static CR of 13.4 to 1. Under normal use, the intake valve closes late, allowing mixture from the cylinder to exit back into the intake manifold, leaving an effective ratio of perhaps 8. However, I don’t know, nor has Toyota provided any info as to what happens when the engine is at WOT. With their variable valve timing, the engine may well revert to a full 13 to 1 CR.

        In any case, the Toyobaru 2 litre engine runs 12.5 to 1 compression ratio with direct injection, and that head design is all Toyota’s. Not sure that Toyota has much to learn from Mazda in gasoline engine design. The 4-2-1 exhaust Mazda claims as its own was a feature of tuned 4 cylinder engines from day 1, a hundred years ago. The engineers then had brains and used them, rather than some of the sad sacks I see today running premade software thinking they know it all. And I is one, an injuneer, I mean.

        The real Skyactiv advance is the diesel engine, and relatively speaking, Toyota sucks the big one in that field, buying Peugeot engines for Europe.

    • 0 avatar
      car_guy2010

      Now, this is a stereotype that needs to be put to bed.

      Bigger isn’t always better.

  • avatar
    Mark Stevenson

    This is really going to help out with Mazda’s bottom line. Toyota will sell more Toyota-badged Mazda 2s than Mazda can sell. However, it will be interesting if this is a replacement for the Yaris or something else. If it is something else, how does that fit into Toyota’s product mix?

    Only time will tell. But, good on Mazda for shaking some hands and amortizing the Mazda 2 platform so we can see more exciting product from them in the future.

  • avatar
    Freddy M

    Good news for Mazda. But will this car replace the Yaris? Also, is the Mazda Demio (Mazda2) selling well in other parts of the world? I know there have been reports that the 2 will be dropped for North America. How’s it doing in Japan?

  • avatar
    Rday

    Interesting to see if Mazda comes under Toyota control in the long run. Wouldn’t surprise me since the car companies keep merging to gain economics of scale and lower production/marketing costs.

    • 0 avatar
      Freddy M

      It would certainly delay VW’s push to become the no.1 automaker if Toyota is able to fold Mazda sales into their own figures.

      • 0 avatar
        kvndoom

        Part of me says it would be good since Sloyota says it wants to bring fun and sportiness back to its cars.

        Part of me says it would be bad and Sloyota would suck all the fun and life out of Mazda and make them completely irrelevant.

        (Sloyota is my own term, contrived after all the dozens, if not hundreds of times I’ve been stuck behind a f%$^&!g Camry in the left lane doing 5 below the speed limit…)

      • 0 avatar
        Freddy M

        LOL, copyright that :)

        Well, I suppose it’s good if you’re a Sloyota fan, and not so good if you’re a Mazda fan.

        Or who knows, perhaps both groups will reject it as an unholy “demon spawn” from two companies that are on opposite ends of the enthusiast spectrum.

    • 0 avatar
      geozinger

      Mazda is ready for it’s own Deathwatch Series. Ever since Ford cut them loose, there’s been nothing but questions about it’s survival.

      Toyota is moving in for the kill…

  • avatar
    NN

    I’m sure Brazil plays a big part here, too, thanks to it’s fast-growing market, love of small cars and FTA with Mexico.

  • avatar
    d524zoom-zoom

    @kvndoom…

    “Part of me says it would be bad and Sloyota would suck all the fun and life out of Mazda and make them completely irrelevant.”
    Agreed!

    Or just swallow them up and they just plain old disappear :(

  • avatar
    Volt 230

    Will this take the place of the Yaris? will it come in under the Yaris? It makes no sense for Toyota to sell 2 subcompacts in this market.

  • avatar
    readallover

    Makes more sense if they become Scions, not Toyotas.

  • avatar
    Spike_in_Brisbane

    No big deal. There is no need to read anything more into this than just a convenient use of manufacturing capacity. In the eighties, Toyota sold rebadged Holden Commodores in Oz as Toyota Lexcens. (Named after the designer of the Americas Cup winning yacht) It filled a model gap and gave users another choice and different trim level. Nobody suggested that Toyota and GM were about to merge.

    • 0 avatar
      Freddy M

      You may be right, but the reason for the speculation is that unlike your example, Mazda is in financial difficulty. GM at the time was not. You say that Toyota filled in a model gap with that re-badged Commodore. Well in this case, there is no model gap as they already have the Yaris which competes with the Mazda2.

  • avatar
    Volt 230

    According to MW, the Yaris will be sold alongside the new Mazda 2 derivative, which is kind of crazy, there is not that big of a demand here for 2 very similarly sized cars from the same manufacturer, reminds me of when Chevy used to sell Prizms and Cavaliers alongside each other.

  • avatar
    panzerfaust

    Mazota? Maybe we should go back to “Toyoda” since it seems that Mazda doesn’t have the upper hand here.


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