Update: Mazda has denied that it has scrapped plans to build a second plant in the U.S. According to the Detroit News, Mazda had no plans to even add a second facility in North America.
According to a report by Japanese business daily Nikkei, Mazda has shelved plans to build a second U.S. factory due a major downturn in industry sales and troubles facing its 33.4 percent share holder FoMoCo. Mazda originally had plans to use a shut-down Ford plant or build a new one with Ford.
Original plans called for production of fuel-efficient mid-size cars and other models from the first half of 2010. Mazda currently builds the Mazda6 in Flat Rock, Michigan.
Nikkei also said that another factor that played part in the decision was that FoMoCo is still shopping for someone to take its 33.4 percent stake in the Japanese automaker.
Source: Automotive News (Subscription Required)