Toyota Motor Co. (TM) - Get Report plans to take a stake in rival Mazda Motor Corp. (MZDAY) and the Japanese automakers said they will jointly invest in a new U.S. production plant that could create 4,000 new jobs. The $1.6 billion facility, when completed in 2021, will be capable of producing as many as 300,000 cars a year, the companies said. Toyota's plant in Georgetown, Ky., has the capacity to make 550,000 cars a year. The plant will make Toyota Corollas for the North American market. Mazda said it would produce cross-over models at the facility that it plans to introduce to that market.
Japan's Nikkei news organization first reported Friday that Toyota was planning to take a 5% stake in Mazda as part of a previously stated plan to develop clean-energy and self-driving vehicle technologies. The two groups confirmed the purchase Friday and said they would combine to invest in a U.S. plant under a cooperation agreement the two companies first revealed in May 2015.
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