Toyota lifts profit outlook on weaker yen prospects

Toyota lifts profit outlook on weaker yen prospects

Toyota lifts profit outlook on weaker yen prospects

In a tweet early Friday morning, Trump praised Toyota and Mazda for investing $1.6 billion in a new USA assembly plant.

The Japanese Nikkei business daily yesterday reported the agreement would include working toward setting up a USA joint-venture plant and cooperation on electric vehicle technology.

Toyota will acquire 5.05 percent stake in Mazda valued at $455 million.

With the capacity to produce about 300,000 vehicles annually, the plant will be operational by 2021 through a new 50-50 joint venture, the person told USA TODAY. "A great investment in American manufacturing!", Trump tweeted.

"It is also the realization of our desire to never let cars become commodities", said Toyota President Akio Toyoda.

Mazda said that it expects to produce cross-over models that it will newly introduce to the North American market, while Toyota said it plans to introduce the Corolla for the North American market. But recent breakthroughs in batteries allow for longer travel per charge.

Toyoda also noted the growing competition from newcomers in the auto industry like Google, Apple and Amazon, stressing he was anxious about autos turning into commodities. It resembles the alliance between French automaker Renault and Japanese automakers Mitsubishi and Nissan.

Toyota lost its title as the world's biggest automaker to German rival Volkswagen Group in calendar year 2016, with worldwide volume inching ahead just 0.2 percent to 10.2 million vehicles.

All Corollas now sold in the US are made in Ontario, Canada or Mississippi.

In 2015, Toyota and Mazda signed a memorandum of understanding to explore collaboration.

Mazda president and COE Masamichi Kogai said that he hopes, through the deal, to "help to energize the auto industry and create more vehicle fans by bringing together two competitive spirits". The stats included the number of Toyota employees in America, how much money the automaker has invested in the USA and how much it plans to invest stateside in the future. Mazda was owned by Ford Motor and Suzuki by General Motors for decades, but their American partners withdrew under financial pressure after the 2008 financial crisis.

Toyota ramped up incentives to move slow-moving passenger cars, but it hopes to rein in the outlays with the launch of the next-generation Camry sedan later this year.

Toyota raised its fiscal full year profit forecast through March 2018 to 1.75 trillion yen ($16 billion), higher than its earlier forecast of 1.5 trillion yen ($14 billion).

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