Kyodo news report that Mazda Motor Corp said Friday it will begin selling vehicles in Mexico under a newly formed Mexican unit after the implementation next spring of a free trade agreement between Japan and Mexico.

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Under Mazda Motor de Mexico, set up on Monday, the automaker plans to sell the RX-8 sports car, subcompact Mazda3 and midsize Mazda6 sports sedan. Mazda aims to start sales in the latter half of 2005, while its sales target has yet to be decided, company officials said.