Japanese car manufacturing giant Toyota has agreed to take a five per cent stake in Mazda, and build a joint $1.6bn US production plant. The deal will also see the pair work together on electric vehicle, self-driving, and in-car infotainment tech.

The pair aim to prepare for the increase in demand of in-car information tech and the increasing demand for connected tech, while Toyota and Mazda both work in Toyota’s vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) tech with the goal of creating ‘a mobile society devoid of accidents’.

“The greatest fruit of our partnership with Mazda is that we have found a new partner who truly loves cars. It has also sparked Toyotas competitive spirit, increasing our sense of not wanting to be bested by Mazda,” said Akio Toyoda, Toyota president. “This is a partnership in which those who are passionate about cars will work together to make ever-better cars. It is also the realization of our desire to never let cars become commodities.”

Masamichi Kogai, Mazda president and CEO, added: “Nothing would please me more than if, through this alliance, we can help to energize the auto industry and create more car fans by bringing together two competitive spirits to spur each other on, leading to innovations and fostering talent and leaders.”