Tokyo, September 29, 2017
Toyota and Mazda and Toyota Group supplier Denso have come together in a joint venture to produce electric vehicles in a bid to keep up with the steadily growing trend of electric passenger cars. In a press release, Toyota has outlined the objectives of this partnership and various other specifics of the venture.
The venture is named EV (Electric Vehicle) Common Architecture Spirit Co Ltd, with Toyota investing 90 percent of the total 10 million yen set aside for this project. Mazda and Denso will both have a 5 per cent stake in the company, each.
The company’s President is Shigei Terashi who was up until now Executive VP of Toyota Motor Corp and has about 40 employees under him presently. Toyota eventually plans to manufacture electric vehicles in China, where electrification is moving at a rapid pace.
Toyota has been a pioneer in hybrid gas-electric vehicles for 20 years, citing limited battery range and lack of affordability as reasons for not moving forward in the production of electric vehicles. Mazda, in the past has had a limited budget for research and development which could be why the company couldn’t consider manufacturing electric cars by themselves.
Denso and Mazda have reportedly seen an increase in shares after the announcement. The business structure created by the companies will welcome participation by other automakers and suppliers. The press release also states that the agreement covers a diverse range of models and that the company would be engaged in producing minivehicles, passenger vehicles, SUVs and even light trucks.
The venture would combine the strengths of each company including Mazda's bundled product planning and prowess in computer modeling-based development, Denso's electronics technologies, and the Toyota New Global Architecture (TNGA) platform. The new company will also use Toyota’s modular platform architecture that’s being used in models such as the Prius and the 2018 Camry. The new cars manufactured by EV Common Architecture Co Ltd will be similar to the previously produced Toyota models.