Mazda is abandoning European manufacturing for its next-generation small-segment model range due in late 2006 or 2007.
Go deeper with GlobalData
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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe 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.
