Mazda is abandoning European manufacturing for its next-generation small-segment model range due in late 2006 or 2007.
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Mazda will produce a replacement for the 2 [aka Demio] at an unspecified location outside Europe, likely in Asia, rather than continue having it built by Ford in Valencia, Spain, Automotive News Europe reported. The 2 shares its platform with the Ford Fiesta, which is also produced in Valencia.
A Mazda source in Europe said the Japanese automaker, which is 33.4% owned by Ford, also was unhappy with the quality of the Spanish-built model.
But cost is a primary concern in the decision. Tooling a plant to produce only 40,000 units annually – the maximum Ford is willing to allocate to Mazda in Spain – is quite expensive on a per-unit basis.
“The trick with small cars is not to lose money,” said James Muir, vice president of sales for Mazda Motors Europe.
The 2 replacement is part of a Mazda drive to reverse under-performance in two segments – small cars and SUVs, where its bland Tribute, another Ford co-product, has been disappointing.
