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

Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 2017
Like it or not, Chevrolet may soon be offering a cheaper Camaro in hopes of competing with Dodge Challenger and Ford Mustang GT. Apart from the less expensive trim, the...
by - August 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