Report: Mazda expect to hit profitability this year

Mazda Shinari Concept

Mazda is predicting they will return to profitability come this fiscal year’s close. The automaker has not done so since 2008, which brought their highest record level sales.
The brand still does not expect to see profits as high as they did four years ago. There are still changes in progress, and outside factors effecting sales numbers.

One element of Mazda’s profit issue is that the increased value of the yen has an impact on export sales.

The collaboration with Ford Motor Co has also come to an end, at least for the moment, with the decision to stop production of the Mazda6 sedan. The next Mazda6 will be imported from Japan.

A decision was also made to open a new plant in Salamanca City, Mexico, the brand’s first overseas plant. This move was part of an effort to restructure their production system to help move more units.

As the joint effort with Ford ends, another begins with Sumitumo Corp as their partners at the new plant in Mexico for $500 million, with a yearly production capacity at 140,000 units. The Mazda2 and Mazda3 will be produced there.

– By: Alexandra Koken

Source: MarketWatch