Bao Tu Road Explores Toyota Alliance Mazda

"Dating is the most fun and happiest time. At this stage, both parties will only see each other's strengths." Two years ago, Toyoda President Tokio Toyoda had already acted like a family when facing President Mazda Sergeant Yadodo. Two years later, the friendly rhetoric when signing the memorandum of intent became a more realistic cooperation. The Japanese carmaker with the largest volume and the most independent company issued a joint statement on August 4th. The deep cooperation between auto and in-vehicle interconnection technologies and product complementarity, and the development of the two major markets of China and the United States have become important fulcrums and reasons for the cooperation between the two sides.

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Toyota and Mazda, who once claimed to have no capital connection, finally came together.

According to an official statement jointly issued by Toyota and Mazda, Toyota Motor will acquire a new issue of 31,928,500 ordinary shares of Mazda through a third-party allotment. According to Mazda’s issuance, Toyota’s shareholding ratio is approximately 5.05%. The total value is about 50 billion yen, or about RMB 3.05 billion. Mazda will also acquire the equivalent equity of Toyota through the disposal of treasury stocks (executed by Toyota through a third-party allotment), and the share ratio will be approximately 0.25% based on the company's already issued share capital.

The joint statement shows that the cooperation between the two sides in manufacturing and technology research and development involves five major areas: 1. Establishing a joint venture in the United States, setting up a plant to start production of a new car. 2. Jointly developed technologies for electric vehicles. 3. Jointly develop car interconnection technology. 4. Jointly develop advanced safety technologies. 5. Expand the lineup of complementary products.

Compared with the intentional cooperation situation two years ago, the electric car was placed on both sides of the temple this time. The two parties stated in the purpose of cooperation: "Effectively predict and quickly respond to the dynamics of the ever-changing electric vehicle market, and jointly discuss electric vehicle infrastructure technologies that can flexibly and quickly respond to regulations and market dynamics in various countries."

Previously, Toyota and Mazda respectively announced that they will sell electric vehicles in 2020 and 2019. In the Chinese market, Toyota now has decided to release the first pure electric vehicle in advance by 2019 (rumored to be a purely electric SUV based on C-HR models, and this pure electric model is only produced in the Chinese market); Mazda Then consider launching a small electric vehicle similar to Renault Zoe.

The change in the rhythm of the launch of the first electric vehicle reflects the widespread concerns of Japanese automakers. In view of the uncertainty in the implementation of the double-track system in the Chinese market, to maintain the current scale of auto production capacity established in Japan, the mature hybrid technology applauds. However, the technical advantages cannot be translated into additional points for the policy of supporting the industry in the Chinese market. Therefore, it is one of the options for the Japanese cars to be launched as soon as possible.

Akio Toyoda emphasized: "The environment of the automotive industry has undergone tremendous changes and needs to have 'resilience'. In addition to independent technological development, building like-minded partners has become increasingly important." Facing the turning point in the automotive industry The change of flags and the search for survival in all directions is already one of the strategies of Toyota and other car companies.

Dealing with American trade protection

The Chinese market represents the future, while the U.S. market is the main source of profit for Japanese auto companies. For this reason, the joint consolidation of the US market position has become the first of five cooperations in manufacturing/technology R&D.

The statement said that Toyota and Mazda will jointly invest 1.6 billion US dollars to set up a joint venture company in the United States to build a new assembly plant in the southern United States, is expected to put into operation in 2021, with an annual capacity of 300,000 vehicles, can create 4,000 jobs. The two companies focus on cooperation to reduce the burden on investment equipment and operational risks, and share their own advantages in production technology and improve production efficiency.

Under Trump's protectionism policy, Ford, Toyota, General Motors and others have announced under high pressure that the previously established Mexican production line will be returned to the United States, or that they will invest billions of dollars to improve plant equipment and invest in new models. Trump has always been dissatisfied with the high market share of Japanese cars in the United States. The Toyota brand ranks second in the United States as a best-selling car brand, directly affecting Ford's championship. The two companies, Toyota and Mazda, jointly established a joint venture in the United States to help ease the sense of vigilance in the US market for Japanese car sales.

According to the two parties, the joint venture plans to produce Mazda’s new cross-border models in the North American market and the Toyota Corolla North American version. Mazda will establish a joint venture company in the United States to further strengthen its flexible production system that can flexibly respond to changes in regional and model demand, thereby building a localized production system for best-selling models in North America. Toyota will also strengthen the North American local production system through this joint venture, and further take root and operate the growing North American market.

Behind the new alliance

From the cooperation between Toyota and Daihatsu, Hino, Isuzu, Fuji Heavy Industries, Suzuki, and the marriage of Toyota and Mazda, a series of cooperation reveals a current undercurrent of the Japanese auto manufacturing industry. Right now, the country’s smaller automakers have found it difficult to compete with Volkswagen, GM, and Ford’s giants, and they are willing to join the industry like Toyota, which has formed a synergy through acquisitions or alliances. .

Takaki Nakanishi, an analyst at Jefferies Group LLC, predicts that by 2020, Japanese car makers may merge into three giant companies, even fewer than three. His argument is that Mitsubishi (including Mitsubishi Motors, Honda Tech), Mitsui (including Toyota Motor), Sumitomo, Fuji (including Nissan Motors), Sanwa and First Weapons’ “six financial groups” are currently forming a mutual aid structure. The main banking system and the mutual holding system reduce internal friction and provide technical and financial assistance when necessary.

At the same time, he also promoted the formation of a covenant by the national car company. PSA Group (PSA Peugeot Citroën Group) recently incorporated Opel into its ranks; Fiat-Chrysler Motor Company hopes to hold hands with GM or the general public; on August 8th, the Renault-Nissan Alliance holds hands with China. Jinsha River invested and packaged and sold the battery business. Some analysts believe that Nissan will sell the entire equity of its battery business and its corresponding production plant to China's Jinshajiang Capital, and it is also for the purpose of making overseas power battery project landing in China.

Nowadays, the pace of the new round of alliance is still continuing after the Japanese cars that are good at playing in groups do not fall behind. Baotuan can be warmed up, and the marriage can win. This also has implications for several major Chinese state-owned auto companies.