A concentration is the merger, acquisition of control or any act by virtue of which companies, associations, shares, social shares, trusts or assets in general join that is carried out between competitors, suppliers, clients or any other economic agents.
On November 19, 2020, Mazda Motor Manufacturing de México and Toyota Motor de México notified Cofece of their intention to carry out a concentration.
After the analysis carried out, Cofece considered that, if the notified operation were carried out, it would have little probability of affecting the process of free competition and economic competition.
In general, Cofece is in charge of preventing concentrations whose object or effect is to reduce, damage or impede competition and free competition.
Likewise, the Commission is empowered to challenge and sanction those concentrations and legal acts derived from them, the object or effect of which is to diminish, damage or impede competition and free competition, in the production, distribution and commercialization of goods and services in Mexico.
Cofece and the automotive companies
Toyota continues to review its North American vehicle models and production capabilities in response to changing market conditions.
Through the commercial alliance with Mazda Motor Corporation, production of Toyota-branded compact cars for sale primarily in North America began at Mazda’s Mexico plant in June 2015.
Additionally, Toyota began production of the Lexus ES350 at its Kentucky plant for sale in the North American market beginning in October 2015.
Toyota also launched the all-new Camry with the first TNGA platform in North America at the Kentucky plant in 2017 and redesigned the Avalon into an all-new model in 2018.
Toyota increased production capacity for the Tacoma from 100,000 to 160,000 in Baja California, Mexico in 2018 and the Highlander at its Indiana plant in 2019.
Toyota’s Mississippi plant began production of the new remodeled Corolla with the TNGA platform in 2019, and its New Mexico (Guanajuato) plant began operations in late 2019 and began producing the Tacoma. Meanwhile, shipment production that started at SIA in 2007 ceased in May 2016.
As part of this effort, in addition to the construction of a new plant in Mexico in 2019, Toyota plans to begin production of the NEW SUV at a new plant in Alabama, United States, that will be established by the joint venture with Mazda around 2021.
In March 2018, Toyota and Mazda established Mazda Toyota Manufacturing, U.S.A., Inc., a new joint venture, to produce vehicles in the United States beginning in 2021.