Mazda entering a joint venture with Sollers to build cars in Russia

Article by Christian A., on April 30, 2012

As part of expansion plans, Mazda is entering a joint venture with Sollers, the Russian automaker, to build vehicles for Russia. Mazda, which is ranked as the fifth largest automaker in Japan, said that 50,000 vehicles would be made for the joint venture’s initial production capacity. Operations will start towards the end of 2012.

The volume is slated to eventually reach 70,000 units annually. The financial details about the joint venture were not announced. The venture will build the following: Mazda's CX-5 SUV, the next-generation Mazda6 car and a Sollers brand vehicle that will be sold in Russia.

Last year, Mazda’s sales n Russia reached about 40,000 vehicles, a 60% year-on-year increase, which makes it Mazda’s No. 2 biggest market in Europe. Government and independent forecasts are in agreement and believe that Russian car sales will expand by about 6% in 2012 to reach 2.8 million vehicles.

Meanwhile, the market is expected to reach 4 million vehicles by 2015. Sollers has recently entered similar ventures with other car companies such as Ford Motor Co and Fiat to benefit from government incentives to give local production a boost.

Mazda, which produces over 70% of its vehicles in Japan and exports more than 75% of that, wants to increase its overseas output capacity so that profits would not depend so much on the strength of the yen.

Last June, Mazda revealed plans to construct a plant in Mexico and is also hoping to increase its output in China. Last March, Mazda sold $1.9 billion in new stock. Almost half of its proceeds will be spent for overseas production bases as well as to improve domestic plants.

Topics: mazda, russia, production

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 2017
Having a 400 hp and 470 lb-ft of torque is a tremendous advantage. Yet Ford hasn’t formally announced the numbers regarding its latest Ford Expedition. The current SUV as we...
by - February 17, 2017
Aston Martin and Red Bull’s AM-RB 001 hypercar project is moving along quickly. This time, the project partners have already commissioned a number of technical partners that would help in...
by - February 17, 2017
This is what happens when a guy thinks fast forward into the future. Never mind if autonomous driving is just lurking around the corner. Volkswagen, Chevrolet, Audi and Ford are...
by - February 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries