Mazda to move its production offshore

Article by Christian Andrei, on August 29, 2010

For various reasons, foremost of which is the dollar-yen exchange rate, Mazda Motor Corp. is considering transferring more of its manufacturing base offshore.

Mazda CEO Takashi Yamanouchi said that this move would better protect the company against currency swings. Since the dollar has continued to weaken against the yen, Mazda's fortunes in dollar-denominated markets are suffering. So far, Mazda has made no decisions.

Yamanouchi hesitated to give further details, citing the quiet period before Mazda's $1.1 billion public stock offering. The money that it expects to raise will be used for hybrid and fuel economy r&d.

Yamanouchi said that Mazda would have to consider its first priority, which is to streamline its domestic cost structure. He wasn't that keen on the option of adding a new factory in the United States beyond the plant in Flat Rock, Mich. , currently shared with Ford Motor Co.

That factory produces the Mazda6 and the Ford Mustang. He clarified that the exchange rate is not the only reason for an offshore plant. He said that the U.S. market is very bad and that Mazda is 'not likely to achieve that kind of volume in North America' to warrant an additional factory.

To warrant retooling, he requires a volume of 100,000 units before he would consider moving a vehicle into an overseas plant.

Topics: mazda, production

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
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