Mazda is not keen to producing cars in Europe despite increased sales

Article by Anita Panait, on July 22, 2013

Mazda is not planning to build cars in Europe despite posting increasing sales in the continent. According to Mazda Europe chief executive Jeff Guyton, the carmaker believes that cost efficiencies are gained from a large plant, adding that this could outweigh the benefits of local production.

Guyton told Automotive News Europe that their intention is to have manufacturing scale, which provides scale economy and quality through repeatability.

Mazda posted a 5.4-percent increase in sales in the first six months of 2013 in the first half in the EU and EFTA countries to 74,419 units, boosted by strong performance of models like the CX-5 crossover and new Mazda6. The carmaker was also able to hike its market share to 1.2 percent, according to industry association ACEA. Mazda currently imports all its vehicles sold in Europe from Japan.

According to Guyton, Mazda is unlikely to ever sell enough vehicles in Europe to justify constructing a site in the continent. He noted that Mazda would need to sell around 200,000 units of a single model to justify the building of a local site.

He said that in Mazda’s best year in Europe, the carmaker sold only around 320,000 cars in its whole range. He said that if he could double that sales record, local production may make sense in Europe. He said that at the moment, building cars in the region doesn't make sense. Mazda will introduce its new Mazda3 compact hatchback and sedan in Europe at the end of 2013.

Mazda3 is distinct for not offering a downsized gasoline turbocharged engine as it features the carmaker’s SkyActiv technology. Guyton said that Mazda focuses on "real-world fuel economy" gained by its SkyActiv technology of lightweight engines, transmissions, body and chassis.

Topics: mazda, europe, sales

If you liked the article, share on:

Comments

Recommended

In the automotive industry, most brands will do what they can to expand their offerings to be present in every potential niche there is. The goal is clearly to increase...
by - April 30, 2017
Just days after unveiling the refreshed 2018 Toyota Yaris hatchback to the North American public at the 2017 New York Auto Show, the Japanese company is now disclosing how much...
by - April 30, 2017
The next generation Volvo XC60 will be soon on its way to dealerships and customers as the Swedish carmaker has already commenced production of the mid-sized sports utility vehicle at...
by - April 30, 2017
In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 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