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.
I think ford will do just fine without mazda. I don’t understand why mazda would prefer to build their cars in japan. High labor costs there too and high shipping costs. They should build in mexico. cheap labor costs and not-to-bad shipping costs and virtually nonexistent environmental regs.
Can the NLRB rule that Mazda CAN’T close their operations?
That would seem to be the natural corollary after their ruling that Boeing can’t open a new plant in S. Carolina.
I had a 2000 Mustang convertible. The seats were the most uncomfortable of any car I've ever owned.
People in Illinois will be lacking their highway construction workers coming up soon (Hope and Change effective now in Obamaland and Rahmvllle). Wonder how many of those affected will vote Obama in 2012?:
About 31,000 construction workers will be laid off starting June 17, according to a construction industry source.
Another 21,000 layoffs are anticipated from the shutdown of hundreds of other capital construction projects, ranging from high-speed rail to drinking water and wastewater projects, according to a memo prepared by the governor's office.
This imaginably produces a good smokescreen for the Obama CREEP: Obama can claim (accurately or otherwise) that Mazda is withdrawing its factory back to Japan to provide more domestic jobs to help try to solve the Fukushima crisis.
No big loss, considering that Toyota, Nissan, Honda, Hyundai/Kia, Mercedes-Benz, BMW and now Volkswagen still have major operations here.
The new Mustang Convertible is light years beyond your 2000, It is now a BMW eater world class Sports Car. I have a Ford Enganeer friend that has a brand new one and it is amazing. The design queue's to honor the car's history are quite subtle yet beautiful.
On the Obama jobs, that sounds about right, "Porkulus" money is drying up and I don't think a GOP House will let him piss away another almost 1 Trillion on Utopian Fund Transfers. And I don't see how QE3 will get these jobs back either. Buckle up, it is going to get rough.
Mazda made in Mexico will be called the Mazda Mordida.
Tell that nonensense to the folks here in the USA building Toyotas by the thousands. The cars are not just assembled here. The Toyota Camry is the most American content car available
I like my Zoom...Zoom... It’s a 2008, but pretty much the same thing.
What he said: President Takashi Yamanouchi has said: “I want to fundamentally solve the problems that Mazda is saddled with (such as the U.S. operations).”
What he meant: President Takashi Yamanouchi has said: “I want to fundamentally solve the problems that Mazda is saddled with (such as the frigging UNIONS!).”
I suppose taking your bat and ball and going home is one way to break the unions.
Ever hear of Bodine Aluminum? How about MOST? Egines, transmissions, bodys are all made in the USA. Your “assembled here “ argument is about twenty years outdated
The article says they're considering factories in Mexico, India, and Russia.
Toyota does not want to be here.Who's stopping them from leaving?
I do not believe that statement. When Toyota and GM were operating the Fremont GM plant (known as NUMMI) we routinely saw daily truckloads of Toyota Pickup frames, and drive train components being trucked down to the plant from Benicia where they were being off-loaded from ships from Japan. The Japanese carmakers don’t build the high dollar content parts of their US vehicles here. NUMMI was two things: A sheet metal stamping, assembly and painting operation for Corollas (and the bastard Pontiac that was a Corolla) and light truck cabs, and two assembly lines building these cars and trucks using mostly components that were made and assembled in Japan. As soon as GM went bankrupt, the NUMMI plant was “handed over” to Toyota, and they closed it because it was a UAW facility.
I suspect the UAW will finally crap out when imported Chinese cars arrive here in mass quantities. And with China holding so much of the debt, there’s nobody in the US govt that’s gonna tell them they can’t import.
I was told the same thing about steel mills. When the japanese companies started buying up american steel mills, all the top engineering positions were japanese men. no americans allowed.
Didn’t know that. Thanks!
How could you say that!! How about supporting the USA. Japan WAS part of the axeis of Evil you know. NOT the union worker who (many) hellped build the middle class.