News Column

Mazda to Make Subcompact Cars in Mexico for Toyota

Nov. 9, 2012

Mazda Motor Corp. will make subcompact cars in Mexico for sale by Toyota Motor Corp. in North America, the two Japanese automakers said Friday.

Mazda will start producing the subcompact, which will be based on the Mazda2, known as Demio in Japan, at a plant now under construction in Mexico around the summer of 2015 for supply to Toyota at an annual pace of some 50,000 units.

Toyota will partly shoulder capital expenditures and development costs for Mazda.

Toyota, which now focuses on sedans and sport-utility vehicles in North America, wants to beef up its lineup amid expectations that demand for subcompacts will grow there due to high oil prices and increasing environmental awareness.

Mazda is eager to raise capacity utilization at the Mexican plant, set to open in 2014 as its main supply base for the Americas, amid uncertain prospects about the Latin American market, including Brazil's curbs on vehicle imports.

The two Japanese automakers have cooperative ties between them as Toyota provides its hybrid vehicle technology to Mazda.

Source: (C) 2012 Jiji Press English News Service. via ProQuest Information and Learning Company; All Rights Reserved

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