Toyota is joining hands with Mazda Motor Corp and auto part supplier Denso to develop electric vehicle technology. The aim of Toyota is to catch up with its competitors in the race to produce better and efficient electric vehicles. Car manufacturers are moving towards developing improved battery-powered cars. Tesla, the rival of Toyota is leading in the production of these cars. Moreover, the reduction in the cost of the battery is allowing makers to add more power to cars, thus it indicates a bright future of electric automobiles.
Toyota confirmed that they will develop electric vehicle technology not just for cars but also for mini-vehicles, passenger cars, SUVs and light trucks. 90% stake in the joint venture will be taken by Toyota while the rest 10 will be equally divided between Mazda and Denso Corp.
between Mazda and Denso Corp.
EV Common Architecture Spirit Co. as the new company will be called will help in producing elements and architecture of electric cars to be used in wide range of segments.
The companies said, “The huge investments and time required to cover all markets and vehicle segments is a pressing issue for individual automakers. New regulations that mandate a certain proportion of electric vehicle sales are beginning to emerge.”
Last month when this news first surfaced that Toyota and Mazda might collaborate to produce electric vehicles, Akio Toyoda, chief executive of Toyota said “The factory’s location has not been decided, but Toyota and Mazda said they hoped the first vehicles would roll off its production lines in 2021. The plant is expected to cost $1.6 billion and will employ about 4,000 workers.”
Toyota also said, “In the future, mobility won’t belong only to carmakers. Totally new players like Google and Amazon are right before our eyes. We (Toyota and Mazda) need to cooperate and compete with them.”