Euro Auto Trends

Japan’s Mazda Motor Corp. said on Friday it would stop making the Mazda2 subcompact at Ford Motor Co.’s factory in Spain when it launches a new B-segment car next year, and instead consolidate production in Japan.

Mazda, held one-third by Ford, built 36,000 units of the Mazda2/Demio car at the Valencia plant in 2005, accounting for 9 percent of the 400,000-unit-a-year factory.

Ford of Europe spokesman Todd Nissen said the auto maker would ramp up production of existing models to make up the difference, adding that Mazda’s output had fallen to about 7 percent of the total this year.

Mazda said the relocation to its Ujina plant in Hiroshima was aimed at maximising efficiencies through economies of scale by lumping together production of its B-segment subcompact cars.

The yen’s current weakness against the euro would also help boost profits, although analysts say Mazda, which exports most of its cars it sells overseas from Japan, needs to eventually reduce its currency exposure by building more vehicles abroad.

The Ujina plant is now working at 87 percent of its capacity of 504,000 units a year, leaving room for roughly 65,000 units. Last year, the factory built 72,000 Mazda2 cars.

Production of the Mazda2 at the Valencia site, which also makes the Ford Focus, Fiesta and Ka models, began in 2003.

With global sales volume growing rapidly, Mazda is looking for ways to boost output capacity from the current 1.45 million units a year. Mazda has said it would outline such steps as part of a new mid-term business plan to be announced next spring.

By Reuters

Mazda UK is about to hit new highs in this year with record sales. This success comes on the back of the new Mazda MX-5, the new Mazda5, Mazda6 and continued buyers’ enthusiasm for the Mazda RX-8.

Mazda has built a reputation for manufacturing cars that stand out from the crowd with outstanding driving dynamics, and it is these attributes that are attracting ever more customers to the Mazda brand. Three models stand out for Mazda, all sports and performance cars and with Mazda taking 40% of the non-premium S-segment (sports cars) the Japanese marque really is Britain’s best loved sports car manufacturer.

The Mazda6 was the car that started the Mazda revolution, and last year it received a number of enhancements to the standard model. In January this year the high performance Mazda6 MPS was introduced, a subtle mixture of turbocharged 260ps MZR engine, four-wheel drive and Mazda design language that makes a welcome change to the overt styling of other Japanese performance cars.

Italian carmaker Fiat Auto and China’s Chery Automobile Co. Ltd. announced Tuesday that they have signed a memorandum of understanding to supply gasoline engines for Fiat cars produced both in and out of China.The two companies said they expect an annual supply exceeding 100,000 1.6 and 1.8 liter gasoline engines. Fiat SpA CEO Sergio Marchionne said the cooperation could be extended to powertrains and other automotive sectors.

“The agreement with Chery will give us the opportunity to further increase the competitiveness of our product range on the international markets,” Marchionne said in a statement. “Chery is a young and modern company with a solid technical background and I am glad to welcome this further step in our strategy of targeted alliances.”

By Associated Press