Japanese automobile corporations Toyota and Mazda announced plans to invest $1.6 billion in the U.S. assembly plant, which will be capable of producing 300,000 cars a year.
According to the plan, the plant will start operating in 2021. It is expected that about 4,000 workers will be employed. At the new plant, Mazda plans to make crossovers, while Toyota will produce Corollas for the North American market.
The companies also decided to take small stakes in each other. Toyota will take a 5 percent stake in Mazda, and Mazda will take a 0.25 percent share of its larger rival. The deal is expected to be closed on October 2, 2017.