Mazda and Sumitomo to establish vehicle production plant in Mexico

June 27, 2011

Mazda Motor Corporation has announced that it has signed formal agreements and begun preparations to establish a Mazda vehicle production facility in Mexico in alliance with Sumitomo Corporation.

mazda

Mazda will manufacture the Mazda2 and

Mazda3 (pictured) at its new plant in Mexico

The Mexico site will be established as a compact vehicle manufacturing hub mainly for Central and South America, and will include both vehicle and engine assembly plants. It will be constructed in Salamanca city, Guanajuato state, 250 kms northwest of Mexico City.

Mazda and Sumitomo will invest a total of $500 million in the plant and plan to commence operations 2013, with an annual production capacity of 140,000 units. The facility will produce Mazda2 (Mazda Demio in Japan) and Mazda3 (Mazda Axela in Japan) models and employ around 3000 people when at full capacity.

Takashi Yamanouchi, Mazda’s Representative Director, Chairman of the Board, President and CEO, said, “Since Mazda entered the Mexican market in October 2005, our sales results have steadily improved, and in 2010 we set a new record for both sales volume and market share. Building on this success, and by leveraging Sumitomo Corporation’s extensive experience and knowledge of emerging markets, we will continue to strengthen our business in Mexico and throughout Central and South America, including the rapidly growing Brazilian market. These initiatives are part of Mazda’s plans to achieve its mid- to long-term goals for emerging markets.”

New sales company in Brazil

Also announced was the joint setting up of a sales company in Brazil.

Between 2005 and 2010, new car demand in Brazil doubled to approximately 3.5 million units. Currently, Brazil is the world’s fourth largest automobile market following China, the United States and Japan.

The sales company will begin operations in the 2012, before the production plant in Mexico is completed, and will initially sell vehicles imported from Japan. When the Mexico facility becomes operational, it will also sell vehicles shipped from Mexico.

www.mazda.com 

www.sumitomocorp.co.jp

Edited by: Paul Whittaker, Editor ipmd.net, [email protected]   

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