Japanese car manufacturer, Mazda and Toyota have collaborated up to build a $1.6bn car plant in the United States.
The new car factory is expected to produce over 300,000 cars every year, with over 4000 people employed.
The decision was well received by President Trump who called it a great investment on Twitter.
The two automobile manufacturers also revealed that they will be working together to build electric cars and this deal comes with 5 percent stake for Toyota in Mazda.
President Trump had earlier stated that he will impose huge tariffs on Toyota cars that are not made in the United States especially Mexico.
His campaign was based on promises that he would improve the industry and increase the employment rate in the industry.
Toyota had earlier announced that they would produce their new brand Corolla in the Mexico but that would now produce in the United States.
The new Mazda SUV will be made at the newly constructed factory in the United States with production set to kick off in 2021.
Plans For Electronic Cars
The factory in Mexico will also produce Tacoma truck.
This collaboration between the two companies relating to the development of electronic cars couldn’t have come at a better time as there has been new legislation against emissions.
Other car companies are also looking for ways to make more battery powered cars.