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.
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.
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