Mazda is adding an engine factory to its Guanajuato, Mexico, assembly plant which is due to come on stream in the first quarter of next year.
The Guanajuato plant, a joint venture between Mazda and Sumitomo Corporation, will make the 2 and 3 models for north, central and south America and has an initial capacity of 140,000 units.
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Mazda is spending US$120m on the engine plant scheduled to be ready by October next year. It will produce around 230,000 Skyactiv engines a year. The automaker has already announced t is expanding domestic production of such engines to meet demand.
The company said in a statement that localising production and increasing the number parts procured locally would enhance its ability to withstand exchange rate fluctuations.
Earlier this year, the automaker announced a further expansion of the Mexico plant to boost annual capacity to 230,00 units by the end of fiscal 2015. Of those extra units, 50,000 will be Toyota models based on the 2 destined for North America. That agreement was announced last November. Toyota is paying the cost of adapting its models which will be sold through its own dealer network.
