Mazda Motor Corp. will produce a small car for Toyota Motor Corp. at a
factory it's building in Mexico, the two companies said Friday.
Toyota
intends to sell the car, a Toyota-brand subcompact based on the Mazda2,
mostly in North America. Mazda will start producing it in the summer of
2015, turning out about 50,000 cars a year.
The production
agreement reflects the difficulties of smaller Japanese brands in the
U.S. market, even as Toyota and other leading Japanese automakers are
strong competitors.
Toyota has been rebounding in the U.S. after a
series of setbacks and natural disasters. It has 14 assembly and
components plants in North America and also produces Toyota Camry sedans
at a Subaru plant in Indiana owned by Fuji Heavy Industries Ltd. It
developed the Scion FR-S jointly with Subaru, which produces it.
By
contrast, Mazda recently withdrew from the Flat Rock venture in
Michigan, where it had built cars jointly with Ford Motor Co. for more
than 20 years.
This week, Suzuki Motor Co. said it was pulling out
of the U.S. car market, where it has struggled with weak sales,
unfavorable exchange rates and high costs to comply with U.S. regulatory
requirements.
Mazda is planning to produce around 140,000 Mazda2
Demio subcompacts and Mazda3 Axela compact cars at the factory it's
building in Salamanca in the Mexican state of Guanajuato.
Its deal
with Toyota is good for both companies, but Mazda stands to benefit
more, said Noriyuki Matsushima, a Tokyo-based analyst at Citi Research.
Mazda
will not only save on the capital investments required for the new
factory, but the additional production for Toyota will lower the plant's
fixed production costs per vehicle, he said.
Toyota is likely to
benefit by shifting production of subcompact cars to Mexico. Its small
car exports from Japan aren't profitable at current exchange rates, with
the yen trading near record levels against the dollar.
Source;
http://www.detroitnews.com/article/20121109/AUTO0104/211090391/1148/rss25
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