Mazda rules out low-cost model
Mazda Motor Corp, the Japanese affiliate of Ford Motor Co, plans to focus on boosting sales in North America rather than joining competitors in building low-cost cars for India and other emerging markets.
"There are many things we still need to do in existing markets, so we have no energy to spare" for emerging markets, Seita Kanai, senior managing executive officer in charge of research and development, said in an interview at the North American International Auto Show in Detroit. "We need to strengthen our brand and improve our quality."
Mazda's strategy contrasts with Toyota Motor Corp. and Nissan Motor Co's plans to develop low-cost models aimed at markets such as India, where some 45 million motorcycle riders may upgrade to a car in the future. The country is set to be the world's fastest-growing automobile market through 2011, helped by demand for low-priced vehicles.
Mazda aims to raise US sales 5 percent to 296,000 vehicles in the year ending March 31. The Hiroshima, Japan-based company's CX-9 sport-utility vehicle was named North American Car of the Year and Truck of the Year by auto-industry journalists. The company also plans to sell redesigned versions of the Mazda6 sedan and station wagon in the middle of year.
Mazda said it doesn't expect earnings to be eroded by a strengthening yen, which cuts the value of Japanese exporters' dollar-denominated sales.
Agencies
(China Daily 01/16/2008 page16)
