Mazda Moving to Mexico

Mazda Motors is thinking of moving ? well not from Japan, at least not its headquarters. But a new proposition to construct a factory in Mexico has been presented to owners.This will be to take advantage of growing demand in that region.

"It is natural that we are considering entering an emerging market to expand our business ... We are considering every possibility," Mazda said in a statement Tuesday. The company, Japan's fifth-biggest car maker by sales volume, said it may establish a base in an emerging economy together with a trading house.

A Mazda spokesman said while Mexico is one of the markets it's considering, nothing concrete has been decided. Trading house SumitomoCorp., which owns 3% stake in the car company, is looking at several possibly factory sites in Mexico.

The two companies are considering producing small cars, such as the Mazda2 and the Mazda3, for their Central and South American markets. The plant may have a production capacity of about 100,000 vehicles a year.

Mazda makes vehicles in three countries outside Japan: US, Thailand and China. The new plant could be the company's first overseas plant without former partner Ford. In Latin America, Mazda sells its vehicles in Mexico, Columbia, Ecuador and Chile. It sold about 52,000 vehicles in those markets in 2009, accounting for only 4.5% of global sales last year.

Mazda hopes to meet or even exceed a global sales target of 1.7 million vehicles in the year through March 2016.

Check out the latest from Mazda now at Twin City Mazda - 3076 Airport Highway, Alcoa, TN 37701.

Source:
http://online.wsj.com/article/SB10001424052748704679204575646211121216520.html?mod=googlenews_wsj
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