Mazda Ramps Up CX-5 Production as Demand Surges in Europe and Japan
Mazda faces a European backlog of 15,000 CX-5 crossovers and is stretching global capacity to 200,000 units to keep up with orders.
Mazda is racing to boost production of its CX-5 crossover after demand in Japan and Europe far outstripped initial forecasts, leaving a backlog of 15,000 vehicles in Europe alone as of late September 2012.
According to Mazda Europe president Jeff Guyton, annual capacity for the CX-5 was set at 160,000 units, but the company is working to raise this to 200,000 within the year. Even this increase may not be enough to keep up with current demand, which Guyton described as running at three or four times the anticipated rate in Japan. European customers are facing waits equivalent to four shiploads of cars, with the backlog not expected to be cleared until February 2013.
Backlog and Production Strategy
The surge in demand has created logistical challenges for Mazda’s supply chain, particularly in Europe where the CX-5 has proved popular since launch. Of the 15,000 European back orders, around 1,000 are from the UK market. Mazda is prioritising increased output at its Japanese plants to address these shortages. The company’s use of its SKYACTIV technologies has enabled more flexible manufacturing: all engines, from the 1.3-litre petrol to the 2.2-litre diesel, are produced on the same line, improving economies of scale and reducing costs.
The CX-5 is also a more profitable model for Mazda than its predecessor, the CX-7, due to these manufacturing efficiencies. This comes at a critical time for the company, which had reported four consecutive years of losses but is now on track to return to profit, helped by the success of the CX-5 and the cost savings from its new production approach.
Mazda6 Estate Joins the Line-Up
Alongside the CX-5, Mazda used the Paris Motor Show to unveil the new Mazda6 estate, which goes on sale in early 2013. Like the CX-5, the new Mazda6 benefits from the same manufacturing cost savings and introduces an automatic diesel variant for the first time in this segment. Mazda expects this to make the model more competitive in Europe, where diesel automatics are in strong demand among fleet buyers and private customers alike.
- CX-5: Strong demand in Japan and Europe, backlog to be cleared by February 2013
- Mazda6 Estate: New model unveiled at Paris, on sale from early 2013, available with automatic diesel
Mazda’s experience with the CX-5 mirrors similar supply challenges faced by other manufacturers as demand for crossovers and SUVs continues to rise. For comparison, Porsche faced a sold-out allocation of the Macan in Germany for 2014, and Subaru accelerated US production expansion to meet high demand.Read more:Porsche Macan Sells Out in Germany for 2014 Allocation.
