
Too soon to declare victory for anybody here. The only clear loser is Trump.
Mazda Motor Corporation and Sumitomo Corporation agreed today to let Mazda buy all the shares Sumitomo currently owns – 25% down from 30% initially – in Mazda de Mexico Vehicle Operation* (MMVO). After the transfer, MMVO will be a production base owned 100% by Mazda by the end of the fiscal year ending in March 2021. Since 2011 MMVO has become one of Mazda’s major production facilities with its cumulative production volume reaching as many as 1 million 4-cylinders engine and MX2, MX3, CX30 vehicles.
Given the ongoing effects of soon-to-be ex-president Trump’s losing trade wars with Canada, Mexico, China and Japan, among other nations, and the uncertainty around provisions of a new trade agreement now called USMCA (United States-Mexico-Canada Agreement), Mazda remains at risk on multiple fronts. The new Agreement went into effect, with no apparent enforcement, starting on July 1, 2020. However, the U.S. Congress has still not ratified it. What happens post inauguration of President Biden is unclear.
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Japan Inc: Toyota and Hino to Pioneer Light-Duty Fuel Cell Electric Trucks with Seven-Eleven, FamilyMart, and Lawson
Toyota Motor Corporation and Hino Motors together with Seven-Eleven Japan, FamilyMart, and Lawson have agreed to jointly consider introducing light-duty fuel-cell electric trucks (light-duty FCETs). The goal is to establish an environment for widespread use in the future, targeting a sustainable society that respects global warming and energy diversification.
Growth in the demand for hydrogen will increase with fuel-cell commercial vehicles, such as trucks and buses, that use more hydrogen compared with passenger vehicles. With commercial vehicles, depending upon use, it is possible to know the driving range and to plan operations systematically, including handling of refueling with hydrogen. The five companies are also making efforts to promote the establishment of an environment for the popularization of fuel-cell vehicles, not only of light-duty trucks, but also of commercial and passenger vehicles. Continue reading →