Mazda is in talks with Ford to stop joint production in the US by 2013, the Nikkei reports, paving the way for it to go the North American route alone as it goes about rebuilding its US business, which has stuttered of late.
It currently produces the Mazda6 at the AutoAlliance International plant in Michigan, its equal partnership venture with Ford, but with US production at well less than half the planned levels, Mazda is looking at letting go its stake in the JV to Ford. The Japanese automaker built just 45,000 vehicles in the US in the year ended March, though its production capacity at the AAI plant is 120,000 vehicles a year.
Ford is anticipated to maintain production at the plant by increasing the number of models it produces there, when the proposed change eventually takes place.
Mazda will be looking at supplying US demand through Japanese production at its Hofu plant and from its future assembly location in Mexico. It has plans to construct a JV plant with Sumitomo Corp there, and intends to eventually also supply Latin America with automobiles produced at the Mexican plant. The plans are part of a review of the carmaker’s global production system and rebuilding of its US operations.
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An indication that the cost of doing a production facility in the US is prohibitively expensive compared to across the border. Ford has no choice, Mazda made the right move because it does not have it allegiance to the flag.
Looks like Mazda is making a very strong show internationally. Good for them.
Digressing a little bit: Do you know that Audis in Malaysia do not come with a GPS? Even the A8L comes “empty”. Now even the Sylphy and Proton Exora is equipped with it.
Soon new myvi also been equipped with GPS. Shame to others..