Mazda to leave Flat Rock plant it shares with Ford

Detroit News staff and wires
Mazda Motor Corp. will pull out of its manufacturing venture with Ford Motor Co. and stop making cars in Michigan, a Japanese newspaper reported Friday.

Ford and Mazda both declined to comment on the report.

But Mazda has been studying whether to keep making autos at the Flat Rock plant, and senior executives have said they expect to make a decision this year.

Mazda and Ford operate the AutoAlliance International plant as a 50-50 partnership. But the plant was running at less than half of its capacity last year, as its 1,700 workers produced just 36,000 Mazda6 cars and 78,000 Ford Mustangs on a single shift.

Citing unidentified company sources, the Nikkei business daily said Mazda was considering selling its stake to Ford as part of a restructuring of its global production operations.

Mazda would ship cars to the United States from Japan and from Mexico starting around 2013, according to the Nikkei.

The Japanese automaker said in a statement Friday that it had "nothing to announce at this time.

"Today's news report … is not based on information released by Mazda. We do not comment on speculation."

Several analysts expect Mazda to announce a decision soon.

"Mazda has signaled for months that it may be ending its U.S. manufacturing presence at the Flat Rock assembly plant, and although the company still hasn't confirmed the action, it seems circumstances are pointing in that direction," said Bill Visnic, senior analyst at online research firm Edmunds.com.

"Sales in the United States for the redesigned Mazda6 built at Flat Rock are running at about one-third of expectations," he said.

This year, Mazda has sold 103,072 vehicles in America, up 5.7 percent. But sales of Mazda6 cars, battling in the cutthroat midsize sedan segment, are down 8.9 percent at 13,604.

Ford has maintained employment at Flat Rock by increasing output of its vehicles at the plant, the Nikkei said.

But the ties binding the companies have loosened. Ford, once Mazda's controlling shareholder with a 33.4 percent stake, has reduced its holding to 3.5 percent.

In the meantime, Mazda is struggling financially. In the fiscal year ended March 31, its losses widened to 60 billion yen, or $742 million, from 6.5 billion yen, or $76 million, in the previous year.

The Hiroshima-based automaker attributed the deterioration in its results to lackluster sales in Japan, the initial impact of the massive March 11 earthquake and tsunami, and the strength of the yen. Mazda exports around 80 percent of the vehicles it makes in Japan.

Source;
http://www.detnews.com/article/20110604/AUTO01/106040319/1148/AUTO01/Report--Mazda-to-leave-Flat-Rock-plant-it-shares-with-Ford

Carscoop: R.I.P. Mazda6 and Subaru Tribeca?!?

Mazda and Subaru may soon be forced to axe two of their models in the US market, the Mazda6 mid-size vehicle and the Subaru Tribeca SUV, due to low volumes that undermine the efficiency of the U.S. plants that they are built in, according to a newspaper report from Japan’s business daily Nikkan Kogyo. It should be noted though that spokesmen for both companies declined to comment on the report.

Nikkan Kogyo wrote that Mazda is planning to discontinue production of the Mazda6 at the Flat Rock, Michigan plant, which it operates as a joint venture together with Ford Motor Co., as sales missed expectations. When Mazda introduce the latest generation of the mid-size model in 2008, the company expected an annual production of around 100,000 units, but last year, the plant churned out just 45,168 Mazda6s. In April, Mazda6 posted an increase of 7.8 percent but sales reached just 2,734 vehicles.

But being that the mid size segment is an important category, the report says that Mazda is mulling other options including the introduction of another model or build a similar vehicle at a lower cost factory in Mexico.

As for the Tribeca, which has been in production since 2005 at Subaru’s Indiana plant, the Japanese newspaper said the company has stopped the development of a new version and plans to use the increased capacity to build the better selling Outback and Legacy. This year through April, Subaru sold just 910 examples of the SUV model.

Source;
http://carscoop.blogspot.com/2011/05/mazda6-and-subaru-tribeca-to-be-axed.html

Mazda 2 Coming to Canada? = More Competition for the Honda FIT!

NEW YORK – The Mazda2, a slick little subcompact sold in Europe and Asia, is coming to Canada, confirmed Mazda Motor Corporation president and CEO Takashi Yamanouchi.


“I've just decided,” said Yamanouchi, a 42-year veteran of Mazda who assumed the top job last November.

The Globe and Mail is the first news outlet to confirm that the Mazda2 will join Mazda Canada' lineup. The announcement was not part of formal Yamanouchi's formal remarks during press days for the New York International Auto Show at the Jacob Javits Centre.

While Yamanouchi would not confirm an exact launch date, sources suggest the Mazda2 would go on sale within the next year. It is designed to compete against the Honda Fit, Toyota Yaris, Hyundai Accent and Chevrolet Aveo, among others.

The Mazda2, of course, is the foundation for the Ford Fiesta already on sale in Europe and other markets. The Fiesta is due at a 2011 model. Yamanouchi said Mazda has wrestled with the decision to add the subcompact to the Mazda Canada's lineup.

“There has been a lot of discussion about that,” he said. “There is concern it would cannibalize Mazda3 sales. We need it to be incremental.”

The Mazda3 is the Canadian operation's most important model by far. The compact was Canada's best-selling car overall for the first two months of this year and No. 3 overall in Canada in 2008, behind the Honda Civic and Toyota Corolla.

Mazda officials are rightly concerned that some buyers might opt for the less expensive Mazda2 rather than purchase the Mazda3. Mazda would need to price the Mazda2 starting below $15,000 for it to make any sense at all and that is at least $1,000 less than the most economical Mazda3.

Pricing the Mazda2 so that it can be profitable and also compete effectively won't be easy. The strong yen makes Japanese exports expensive overseas.

Nonetheless, Yamanouchi said that Canada is Mazda's fourth-largest market in the world and plays a critical role in the company's fortunes. Given 50 per cent of all passenger car sales in Canada are comprised of compact and subcompact models, Mazda Canada has been under pressure to sell the Mazda2 for some time.

News of the Mazda2 coming to Canada was the most startling development during a second media day at the New York show. But it was by far not the only announcement.

Subaru unveiled the 2010 Legacy sedan and Outback wagon, promising to tackle rivals such as the Toyota Camry, Honda Accord, Ford Fusion, Nissan Altima and Chevrolet Malibu with more vigor.

Subaru Canada president and CEO Katsuhiro Yokoyama said the outgoing all-wheel-drive Legacy is slightly undersized compared to other midsize sedans. But the 2010 model, with its all-new platform, more robust styling and added features, is better positioned to take on the sales leaders in the midsize sedan segment.

“Now we can compete, but first we must get on the shopping list,” he said.

That means Subaru Canada will not cut its marketing budget this year in an effort to reach out to new customers. The company is reasonably well positioned to do so, too. Last year Subaru Canada had its best sales year ever, selling nearly 20,000 vehicles despite the economic downturn. Sales remain strong this year, also.

Yokoyama said Subaru's success in Canada can be traced to the new models launched in the last 18 months. The Forester crossover, in fact, won its category in the annual car of the year awards handed out by the Automobile Journalists Association of Canada (AJAC).

The Impreza compact, meanwhile, is one of the few AWD compact cars sold in Canada and it enjoys a strong reputation for safety and reliability.

The third pillar in the company's product lineup in Canada is the Legacy/Outback combination. It will roll into dealer showrooms late this summer. Pricing will be announced later this year.


Other announcements at the show:
Scion, Toyota's youth brand, showed a minicar concept clearly based on the Toyota iQ sold in Europe and Asia. Scion comes to Canada next year and a production version of the minicar might be part of the lineup, competing against the Smart fortwo.

Mercedes-Benz showed the E63 AMG, a 518-horsepower version of the E-Class; Hyundai previewed the next Santa Fe with a crossover concept; Mitsubishi had an upscale concept version of its Outlander crossover; and Acura's ZDX prototype, based on the MDX crossover utility platform, will go on sale in the fall. The ZDX is a so-called four-door coupe and will be built in Alliston, Ontario.


Source;
http://www.theglobeandmail.com/blogs/driving/

Mazda To Buy Back 20% Of Ford Ownership Stake For $185 Million

TO OWNER....

Ford to Change Ownership Stake in Mazda

- The two companies will continue their strategic relationship -

HIROSHIMA, November 18, 2008—Mazda Motor Corporation (Mazda) has announced today that Mazda and several of its strategic business partners will acquire a part of Ford Motor Company’s (Ford) shares in Mazda through market trading.

As a result, the ratio of Ford’s ownership of Mazda stock will be reduced from 33.4 percent to just over 13 percent, with the new agreement allowing the two companies to continue their strategic relationship that spans nearly 30 years.

“The sale of Mazda shares by our partner, Ford, will not result in any change in Mazda’s strategic direction and we will continue to accelerate our product-led brand improvement and cost innovation initiatives,” says Mazda’s Chairman, President and CEO, Hisakazu Imaki. “We will continue our strategic relationship through our ongoing joint ventures with Ford, as well as the sharing of platforms and powertrains.”

“This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies,” said Ford President and CEO Alan Mulally.

Ford’s sale of the Mazda stock will be achieved through Mazda and a group of Mazda’s strategic business partners each buying a portion of the shares.

Source;

http://jalopnik.com/5091700/mazda-to-buy-back-20-of-ford-ownership-stake-for-185-million

Civic Competitor Mazda 3 gets full Makeover for 2010

Looks like Mazda will officially introduce their new 2010 Mazda 3 for Novemeber 19th at the LA Auto Show. This is a VERY important car to Mazda and it looks like it's going to be an impressive offering. Coincidently, Honda was expected to have the Civic go through a major model change in 2010, although with the minor model change that the Civic went through for 2009, I'd expect a 2011 date for the full Civic make over.

Mazda PRESS RELEASE

All-New Mazda3 Sedan to Debut at the 2008 Los Angeles Auto Show

HIROSHIMA, Japan-Mazda Motor Corporation has confirmed that the sedan version of the all-new Mazda3 (known as Mazda Axela in Japan), fully redesigned for the first time in 5 years, will be revealed at the Los Angeles Auto Show*1 on November 19, 2008.

The covers will be pulled off during Mazda's press conference from 12:20 to 12:45 (local time) revealing the all-new Mazda3, the latest evolution of Mazda's Zoom-Zoom spirit.

All-new Mazda3 sedan (North American specification)

Every element of the all-new Mazda3 has been developed for heightened exhilaration, with a more refined sporty ride, top class fuel economy and quietness. Environmental and safety features, based on Mazda's long-term "Sustainable Zoom-Zoom" vision, aim to achieve a balance with fun-to-drive. Add in a new expressive face and Mazda's dynamic design elements, and the all-new Mazda3 is everything a driver could ask for in a sports compact.

The brand new version of Mazda's best-selling sports compact carries forward the heritage of Mazda and the pedigree of the current Mazda3. Since its launch in 2003, the current Mazda3 has sold approx. 1.8 million vehicles*2 in over 100 countries and has won more than 90 global motoring awards*3 to date. The Mazda3 accounts for almost one in three Mazdas sold every year.

Following the world debut of the North American specification sedan with 2.0- and 2.5-liter engines at the show, the five-door hatchback version will be revealed in line with Mazda's global sales schedule.

Source;
http://www.mazda.com/publicity/release/2008/200810/081009.html