JAPAN: Mazda plans big operating profit boost
Mazda's new mid-term plan, dubbed "Mazda Advancement Plan", wants to boost operating profit 27% to JPY200bn with 1.6m global retail sales a year and a return on sales (ROS) ratio of 6% by 2010.
Manufacturing innovation and accelerated structural reforms will be key focus points during the period. Other key areas include continuing to improve brand value and increasing business efficiencies.
Mazda president and CEO, Hisakazu Imaki, said: "Under the Mazda Momentum plan, [we] succeeded in its efforts to build a solid foundation for consistent and steady future growth. We understand the challenges ahead and are addressing them. The next steps that [we] need to take for the future are clear: deepen our synergies with Ford, improve Mazda's brand value and seek increased business efficiencies."
Synergies with Ford will continue to be a top priority.
In North America, Mazda wants to expand its product lineup, improve customer satisfaction, develop 'next-generation' dealerships and improve the performance of its exclusive dealers. It also wants to attract more younger customers.
The automaker will also work toward gaining 100% control of distributors in the United States and Canada.
In Japan its aim is also a stronger product line, better customer service and improved, more profitable dealers with an emphasis on more outlets in the Tokyo metropolitan region.
For Europe, Mazda wants to offer more advanced powertrains "which will improve customer satisfaction", improve sales productivity and profits and open more dealers in major urban areas. It also plans to enter some emerging markets in the east.
For China, Mazda plans a smooth launch of operations at the Nanjing plant, efficient product launches (it recently had to stop 3 sales there for months as correct government approval had not been approved for the sales operations), and develop the dealer network to support sales of 300,000 units a year.
In ASEAN and Australia, Mazda plans to strengthen the model lineup, launch the CX-7 and CX-9 crossovers in Australia, boost urban sales and improve customer satisfaction levels in Australia.
Over the next four years, Mazda will increase R& D investment by 30% as well as raise capital expenditures by 50% compared to the last four years.
It will expand production capacity in Japan to 996,000 units in FY2007 through increasing production at the Hiroshima plant by 31,000 units and by 67,000 units at the Hofu plant, with a corresponding rise in engine production capacity.
Overseas, it will launch the Nanjing plant in China using an evolved Mazda Manufacturing System and improve quality and cost competitiveness at production facilities in Thailand and the US.
Its future production capacity expansion policy will be to promote manufacturing innovation to enable volume and model mix flexible production competitive in quality and cost, build sales in all markets and develop overseas production capacity by taking into account the balance in each market of sales demand and resource availability, and maintain domestic production capacity levels and transfer the skills developed in Japan to other regions.