Mazda plans to set up a sales company in Brazil and establish local assembly in Mexico in alliance with Sumitomo Corporation.
The production facility, representing an investment of US$500m, will be established as a compact vehicle manufacturing hub mainly for Central and South America, and will include both vehicle and engine assembly plants.
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The project will create some 3,000 jobs.
It will be constructed in Salamanca city, Guanajuato state, 250km North-West of Mexico City. Mazda and Sumitomo plan to start operations in fiscal year 2013 ending March 2014 with an annual production capacity of 140,000 units.
The plant will produce the Mazda2 (Mazda Demio in Japan) and Mazda3 (Mazda Axela).
The Brazilian sales company will begin operations in fiscal year 2012/13 and will initially sell vehicles imported from Japan until the Mexico production plant is completed.
Demand for new cars in Brazil doubled to around 3.5m units between 2005 and 2010 and the country is now the world’s fourth largest automobile market following China, the US and Japan.
“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,” said Mazda president and CEO Takashi Yamanouchi.
“Building on this success, and by leveraging Sumitomo Corporation’s 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.”
