Japanese auto giant Toyota has extended the closure of its factories in China. Photo: Reuters

UPI reports that Toyota and Mazda will build a joint US$1.6 billion plant in the US that’s expected to be operating by 2021.

Toyota plans to build its Corolla model at the new facility while Mazda will build new crossover vehicles for the US market. A site for the facility is yet to be chosen.

Toyota had originally intended to build its Corollas at a plant in Guadalajara, Mexico. US President Donald Trump criticized the Mexico plan and threatened to slap a “big border tax” on vehicles imported into the US from the facility.

Toyota still plans to make trucks at the Guadalajara plant.

The two companies also said in a statement on Friday that they will collaborate in developing electric cars, connected vehicles and advanced safety technologies.