Mazda: We Will Not Build Cars in Europe image

Mazda said it will not manufacture vehicles in Europe despite increasing sales in the market.

Mazda Europe CEO Jeff Guyton said that costs reductions are achieved from a large plant and this can outweigh the benefits of local manufacturing. During the first six months of the year Mazda’s sales in Europe increased 5.4% to 74,419 vehicles, thanks to increased demand for the new Mazda6 and the CX-5 crossover. Market share also increased to 1.2% from 1%, according to ACEA.

“Our intention is to have manufacturing scale. That gives you scale economy and quality through repeatability,” he said.

Currently the automaker imports from Japan all the vehicles which it sells in Europe, and Guyton said that Mazda will never sell enough vehicles on the Old Continent to justify building a plant here; with one exception: sell around 200,000 units of a single model.

“In our best year we sold 320,000 cars in our whole range,” Guyton told Automotive News Europe. “Maybe if I double our record someday, it would begin to make efficient sense [to build here], but at the moment it doesn’t make sense.”

At the end of this year Mazda will introduce in Europe the new Mazda3 compact hatchback and sedan, but it will not include a downsized gasoline turbocharged engine, which is quite unusual for its class.

Source: Autonews