Waymo to Expand Autonomous Vehicle Production at New Arizona Plant with Magna

Alphabet’s self-driving unit, Waymo, announced plans to manufacture autonomous Jaguar I-PACE and Zeekr vehicles at a new facility in Mesa, Arizona, in partnership with Canadian auto parts giant Magna International (NYSE:MGA). Production is set to begin later this year as Waymo ramps up its expansion in the competitive autonomous vehicle (AV) market.

Waymo, which originated in 2009 as a Google (NASDAQ:GOOGL) initiative, has grown steadily despite industry-wide setbacks caused by high R&D costs, stringent regulations, and technological challenges. The company’s new Mesa plant, a multi-million dollar investment, has already created hundreds of jobs and marks a significant step in scaling Waymo One — its fully autonomous ride-hailing service.

Waymo One currently operates over 250,000 paid rides weekly across San Francisco, Phoenix, Los Angeles, and Austin, following more than 4 million paid trips in 2024. The service is slated to expand into Atlanta and Miami next, with Washington, D.C. added by 2026.

As part of its scaling efforts, Waymo plans to build over 2,000 fully autonomous Jaguar I-PACE vehicles by the end of next year. The company will also integrate its proprietary self-driving technology — known as the Waymo Driver — into new vehicle platforms, starting with the Zeekr RT later this year.

Waymo’s vice president of operations, Ryan McNamara, described the Mesa integration plant as the "epicenter" of the company’s future growth strategy. The expansion highlights Waymo’s commitment to leading the AV sector through continued investment, strategic partnerships, and geographic growth.

With the AV market expected to grow rapidly, Waymo’s move reinforces its long-term ambition to make autonomous mobility mainstream across major U.S. cities.