Mazda has confirmed that the car it will build at the Ford plant in Valencia, Spain, is the next-generation Demio, a compact hatchback.
Production for the European market will begin early in 2003 with an initial annual production target of 40,000.
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Mazda also plans to start European production of the 323 (Familia) 5-door in the near future.
The next-generation Demio will share its platform with the new-generation Fiesta due to be launched at this year’s Frankfirt motor show.
Mazda is considering using Ford petrol engines and buying European-made diesel engines for the European-built Demio.
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