Mazda to move its production offshore

Article by Christian A., 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:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 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