Mazda to Open Plant in Mexico, Sales Company in Brazil

Japanese automaker Mazda today announced it will open a vehicle production facility in Mexico and a sales company in Brazil, in alliance with Sumitomo Corporation. Thus, a new joint venture is born, in order to enhance both companies’ business in the rapidly growing Central and South American markets.

Taken separately, the Mexico production facility will be established as a compact vehicle manufacturing hub mainly for Central and South America, and will include both vehicle and engine assembly plants.

The plant will be located in Salamanca city, Guanajuato state, 250 kilometers northwest of Mexico City. Production here is expected to begin sometime in 2013, with an annual production capacity of 140,000 units. The facility will produce Mazda2 (Mazda Demio in Japan) and Mazda3 (Mazda Axela in Japan) models.

The Brazilian sales company will begin operations in 2012, and will initially sell vehicles imported from Japan. When the Mexico facility becomes operational, it will also sell vehicles shipped from Mexico.

Between 2005 and 2010, new car demand in Brazil doubled to approximately 3.5 million units. Currently, Brazil is the world’s fourth largest automobile market following China, the United States and Japan.

“Since Mazda entered the Mexican market in October 2005, our sales results have steadily improved, and in 2010 we set a new record for both sales volume and market share. Building on this success, and by leveraging Sumitomo Corporation’s extensive experience and knowledge of emerging markets, we will continue to strengthen our business in Mexico and throughout Central and South America, including the rapidly growing Brazilian market,” said Takashi Yamanouchi, Mazda's Representative Director, Chairman of the Board, President and CEO.