Toyota and Mazda announced plans to build a new manufacturing plant in the U.S., bringing 4,000 jobs to the as yet unnamed location.
The plant will have an annual production capacity of about 300,000 vehicles, and will produce Toyota Corollas as well as a new Mazda crossover vehicle for the North American market. Currently, all of Mazda's cars sold in the U.S. are made in other countries. Mazda hasn't made cars here since it stopped manufacturing cars with Ford in Michigan in 2012. Toyota will instead build its Tacoma pickups at its Mexico location
The companies will split the cost for the plant equally and expect the plant to begin operations by 2021.
Additionally, the companies announced their plans to develop technologies together for electric vehicles and connected cars with internet access.
"Today's agreement is a testament to the positive result of two years of collaborative and deliberate discussions between the two companies, and it is a milestone in the journey to further strengthen and accelerate the partnership in a sustainable way," Toyota and Mazda said in a statement.
As part of the deal announced Friday, Toyota is acquiring 5 percent of Mazda, while Mazda is acquiring 0.25 percent of Toyota.