Toyota, Mazda and Denso created a new joint venture to develop electric vehicle technology.

Toyota Motor Corp is setting up a new venture with Mazda Motor Corp. and Denso to develop electric vehicle technology for what has become a worldwide race to develop electric vehicles to meet demands for cleaner air.

Toyota is putting up 90% of the capital for the new venture, EV C.A. Spirit Co. Ltd. Denso and Mazda will put 5% each. The new venture will be based in Nagoya, Toyota’s home base in Japan. Denso is one of Toyota’s most trusted suppliers of sophisticated components, including electronics.

The venture will be staffed by selected engineers from the three companies to ensure the efficient implementation of the joint technological development projects, according to a statement released by Toyota.

The plans build on a partnership announced in August when Japan’s biggest automaker agreed to take a 5% stake in Mazda and the two companies agreed to jointly develop affordable electric vehicle technologies and build a new assembly plant in the U.S. dedicated to produce electric vehicles.

(Toyota set to build first hybrid model in U.S. Click Here for the story.)

“As countries and regions around the world adopt increasingly stringent policies to help reduce greenhouse gases, new regulations that mandate a certain proportion of electric vehicle sales are beginning to emerge,” the statement said.

Toyota President Akio Toyota and his Mazda counterpart Kogai announce their alliance, which is separate from this new JV with Denso.

“Complying with these environmental regulations, while ensuring the sustainable growth of our companies, requires the development of a wide range of power trains and technologies. We regard electric vehicles as a key technological field in this process alongside fuel cell vehicles,” it added.

The auto industry has been rocked by an announcement by authorities in China that they are preparing to outlaw the gasoline engine by 2040. China’s move follows similar moves by Great Britain and France.

(For the full story on the Toyota-Mazda joint venture, Click Here.)

Toyota noted with EVs yet to find widespread market acceptance, the huge investments and time required to cover all markets and vehicle segments is a pressing issue for individual automakers when responding to the widely varying demand for vehicles around the world.

Mazda, Denso, and Toyota have decided to jointly develop basic structural technologies for EVs capable of covering a wide variety of vehicle segments and types to ensure flexible and rapid response to market trends, the statement said.

The agreement creating the joint venture covers a diverse range of models, from mini vehicles to passenger vehicles, SUVs and light trucks, and aims to innovate the development process by combining the strengths of each company, including Mazda’s bundled product planning and prowess in computer modeling-based development, Denso’s electronics technologies, and the Toyota New Global Architecture platform.

(Toyota set to reveal electrification strategy at 2018 Detroit Auto Show. For the story, Click Here.)

The goal for Mazda and Toyota is to focus their resources on fundamental vehicle values to create EVs that embody the unique identities of each brand. The companies also aim to create a business structure that is open to participation by other automakers and suppliers.

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