Mazda bets US growth on Mexico facility image

Mazda Motors, the small Japanese manufacturer that faced the odds and survived on its own after Ford ditched it, now bets its US growth future on its first wholly developed factory in the North American region.

The automaker is Japan’s most dependent on exports, so the plant would aid it’s strive to become shielded by currency fluctuations, according to IHS Automotive, while the $770 million facility would also allow Mazda to bring down shipping costs and reap benefits from Mexico’s big span of trade accords.

“Without this plant, it would be very difficult for Mazda to maintain their position in the U.S. market,” said IHS Automotive Managing Director Michael Robinet. “They are a mass-market vehicle manufacturer and to be competitive in the U.S. market, you have to be building in North America.”

The plant has already began producing cars and Mazda is only the latest of Japanese automakers like Nissan (last November) and Honda (this week) opening facilities on Mexican soil. The production will be made of Mazda2 and Mazda3 small cars, while Toyota contracted 50,000 units from the annual plant’s 230,000 vehicles capacity.

Via Bloomberg