Mazda says it may pull out from Flat Rock factory jointly operated with Ford

Article by Christian A., on February 22, 2011

As production has become unprofitable, Mazda Motor Corp.’s CFO Kiyoshi Ozaki said that the company may pull out from a U.S. factory it operates jointly with longtime partner Ford Motor Co. Ozaki told reporters in Tokyo that plans for the Flat Rock, Mich., factory will be revealed by the middle of the year.

Ozaki said that Mazda, Japan's second-largest car exporter, will consider overhauling the plant or change the models built there. However, Ozaki didn’t provide further details.

Currently, the plant assembles the Ford Mustang and Mazda6 sedan on one production shift. Ozaki said that for the plant to make a profit, it has to operate at 70 percent of its full 240,000-unit capacity.

Mazda seeks to present a more fuel-efficient engine to spur demand and boost domestic production to improve economies of scale after falling into a third-quarter loss.

In January 2011, Mazda’s U.S. sales dropped 9 percent, as demand fell due to increased incentives on Toyota Motor Corp.'s Corolla compact, and as demand for Hyundai Motor Co.'s Elantra took away some of the demand for the Mazda3.

The carmaker has to adjust U.S. inventory by 5,000 units through the end of March. Mazda seeks to increase domestic production 33 percent to 1.1 million units in the year ending in March 2016, compared with 827,910 units last fiscal year. Ozaki also said that the ratio of exports will also go up as demand for cars in Japan declines.

Topics: mazda

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