Skip to comments.Mazda to End Production in the U.S.
Posted on 06/06/2011 2:38:29 PM PDT by ReagansShinyHair
Mazda Motor Corp. is expected to end production of its vehicles in the United States.
The automaker is considering selling its 50-percent stake in its U.S. joint venture with Ford Motor Co., AutoAlliance International Inc. in Flat Rock, Michigan, to Ford in two years, sources said June 3.
Mazda is expected to shift production to its Hofu plant in Yamaguchi Prefecture and export vehicles to the United States.
President Takashi Yamanouchi has said: "I want to fundamentally solve the problems that Mazda is saddled with (such as the U.S. operations)."
In fiscal 2010, AutoAlliance International produced only 45,000 Mazda vehicles, less than 40 percent of its annual capacity of 120,000 units, because of poor sales.
A senior Mazda official said low production was making it impossible for the automaker to make money through the joint venture.
Mazda booked an extraordinary loss of 8.5 billion yen ($105 million) for depreciation of U.S. production facilities in its consolidated financial statements for fiscal 2010.
Ford was Mazda's largest shareholder with a 33.4-percent holding, but its stake fell to 3.5 percent in November after Ford sold assets in the aftermath of the global financial crisis.
Mazda, which assembles 70 percent of its vehicles in Japan, plans to expand production in other countries to reduce risks from currency exchange fluctuations. In fiscal 2010, the company lost 43.7 billion yen because of the yen's appreciation.
The company plans to build a factory in Mexico with a major trading house and is also investigating new plants in Russia and India.
Overseas production accounts for about half of vehicles made by rival automaker Toyota Motor Corp., while Honda Motor Co. and Nissan Motor Co. make about 70 percent of their vehicles abroad.
The fundamental problems he refers to are unions, duh. He wishes he was in a right to work state, or back in Japan. With the NLRB the way it is, he has to leave the country.
Raise the corporate taxes on that evil corporation. That should get them back! /s
Had they originally located the plant in a right to work state it would have been profitable.
More good economic news.
I suspect this is part of a multi-step strategy to move to a RTW state while avoiding being Boeinged by the NLRB. Close unionized plants — move operations to Japan — wait out lunatic marxist administration — open new US plants in RTW states.
Mazda (known in Japan as Matsuda) is considered the Ford of car builders of Japan and who does Mazda want to sell to? Ford! How perfect!
Whuts gonna happen to the Fusion and Ranger P/U.
Tho I think the Fusion is assembled in Mexico.
I love my made in Japan Mazda 3, but would have second thoughts about buying a Mazda made in the USA by union labor.
We are on our second Mazda SUV (Tribute, then CX7) and have really liked them. Dependable, good styling and fun to drive, for an SUV. I hope they stay in the US market.
My 98 8 passenger Mazda MPV sport was one of the best cars I have ever owned. I am trying to sell it now. 200K on it.
Well designed too,
Have a Nissen Xterra now, and not half as well designed.
Going to try toyota next.
Ford has sold down it's ownership stake in Mazda all the way from the Japanese maxium of 30 something percent down to about 3.8% They are still colaborating from an engineering standpoint at some level but this IMHO could free up Flat Rock from co producing Mazda based products to either make the plant Mustang only or ?????
That is the question, what else will Ford co-produce their, perhaps on the Mustang Planform.
It is official ( via a Ford Press Release ) that at somepoint the Aussie Falcon ( 4 door hot rod ) will share the Mustang Planform in the future.
So, does that open the door for a "Hot Rod Lincoln" on the same planform in the future?
All this speculation and just over a buck will get me a cup of Dunkin Donuts Coffee...
But, ....It may not be "Unions" at all, just a distancing relationship and Ford possibly grabbing that opportunity to make the plant their product(s) centric...
I had two 626s built in Michigan by the union thugs. They were both fantastic cars.
Yeah, me too...but I think they're talking about moving the Mazda factories to Mexico, Russia, or India. I think I prefer US labor to any of those.
You must not have known this...ford owns 50% of mazda, or used to.